Joaquin has agreed to lend his younger brother
Joaquin is charging his brother
simple interest per month. If his brother pays him back in 6 months, how much will Joaquin get back?
Using the equation for simple interest:
Remember, the total money Joaquin gets back includes the principal and the interest.
If Joaquin’s brother instead borrowed the money from a bank at
compound interest per month, how much would he have to pay the bank at the end of 6 months?
Use the equation for compound interest: