2400 loan w/ 2.5% annual interest, due in 6 months: find amt

[SONCEE]

James brown took out a loan for 2,400 to purchase holiday gifts. the annual interest rate is 2.5% the loan is due in 6 months how much will james have to pay back at the end of 6 months. remember time is in years

I did this

(2,400)(0.025)(1)= 60

can somebody check this and if it is wrong show me the right answer.

 

[mmm4444bot]

We assume simple interest (i.e., no compounding) because you did not say otherwise.

Your calculation shows that you let t = 1 year.

James did not borrow the money for one year; he borrowed the money for 6 months.

How many years is 6 months?

Substitute this number of years for t, and you'll get the correct answer.