Kennedy owed $925 to his friend a year ago and owed $600 to another friend 6 months ago. If he clears his debt today, what total payment is he expected to make, if the simple interest of 20% is applicable?

Question

Quizplus · Accepted Answer

For the $925 debt with a year's interest at 20%, the interest is $185 (20% of $925), making the total $1110. For the $600 debt with 6 months' interest at 20% annually, the interest for 6 months is $60 (10% of $600), making the total $660. Adding both totals gives $1770.

Kennedy Owed $925 to His Friend a Year Ago and Owed