You are going to loan money to your brother-in-law. He is borrowing $1000 for six months....

 

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You are going to loan money to your brother-in-law. He is borrowing $1000 for six months. You have learned that the value of money may go down and buy less in the future. You decide to charge your brother-in-law an interest rate to make up for the loss in value over time. You do some research and decide that an annual rate of 6% is fair. How much interest will you charge for the six-month loan? You are going to loan money to your brother-in-law. He is borrowing $1000 for six months. You have learned that the value of money may go down and buy less in the future. You decide to charge your brother-in-law an interest rate to make up for the loss in value over time. You do some research and decide that an annual rate of 6% is fair. How much interest will you charge for the six-month loan?

Answer rating: 100% (QA)

To calculate the interest for the sixmonth loan we can use the formula ... View the full answer