https://file.aiquickdraw.com/mathbot/file/1726785855972oofrhfpc.jpg

The problem in the image involves calculating simple interest for a loan.

Given:
- Loan amount $ P = 300 $ dollars
- Interest rate $ r = 2\% = 0.02 $ per year
- Time $ t = 6 $ years

Using the **simple interest formula**:

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

1. **Total interest (a):**

\[
I = 300 \times 0.02 \times 6 = 36 \, \text{dollars}
\]

So, Alan will have to pay **\$36** in interest.

2. **Total repayment amount (b):**

The total repayment includes both the principal and the interest:

\[
\text{Total repayment} = P + I = 300 + 36 = 336 \, \text{dollars}
\]

Thus, Alan's total repayment will be **\$336**.

Let me know if you'd like further details or explanations!

Here are 5 related questions for practice:
1. What would the interest be if the interest rate was 3% instead of 2%?
2. How does compound interest differ from simple interest in this context?
3. If Alan repaid the loan in 3 years instead of 6, what would the total interest be?
4. What formula would be used if the loan was compounded annually?
5. How much interest would Alan pay if the loan amount was \$400 instead of \$300?

**Tip:** In simple interest problems, the interest is proportional to the time, meaning if time doubles, the interest doubles too!

To go on a summer trip, Alan borrows $300. He makes no payments until the end of 6 years, when he pays off the entire loan. The lender charges simple interest at an annual rate of 2%. (a) How much total interest will Alan have to pay? (b) What will the total repayment amount be (including interest)?

Calculate the simple interest and total repayment amount for a $300 loan with a 2% annual interest rate over 6 years. Learn how to apply the simple interest formula: I = P × r × t. This problem is suitable for students in Grades 7-9.

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