
If you borrow $600 for 6 months at 4% annual simple interest, how much must you repay at the end of the 6 months?


To calculate the total amount to be repaid at the end of 6 months with simple interest, use the formula:

\[
A = P + I
\]

where:
- $ A $ is the total amount to be repaid,
- $ P $ is the principal amount (the initial amount borrowed),
- $ I $ is the interest.

The interest $ I $ can be calculated using the formula:

\[
I = P \times r \times t
\]

where:
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time in years.

For your case:
- $ P = 600 $ (the principal),
- $ r = 0.04 $ (4% annual interest rate),
- $ t = \frac{6}{12} = 0.5 $ years.

Now, calculate the interest:

\[
I = 600 \times 0.04 \times 0.5 = 600 \times 0.02 = 12
\]

Now, calculate the total amount to be repaid:

\[
A = 600 + 12 = 612
\]

Thus, the total amount to be repaid at the end of 6 months is **$612**.

Would you like more details on this calculation or have any questions? Here are some related questions you might find interesting:

1. How would the repayment amount change if the interest rate were higher?
2. What would the total repayment be if the loan period were extended to 12 months?
3. How does simple interest differ from compound interest?
4. What are some common uses of simple interest loans?
5. How can you calculate the total interest paid over multiple loans? 

**Tip:** Always double-check the interest rate conversion (from percentage to decimal) to avoid calculation errors!

If you borrow $600 for 6 months at 4% annual simple interest, how much must you repay at the end of the 6 months?

Discover how to calculate the total repayment for a $600 loan at 4% annual simple interest over 6 months. Learn the key formulas and steps involved in finding the interest and total repayment amount.

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