The interest to be paid on the loan is $30 and the total amount owed the parents is $530.
What is the simple interest?
The simple interest on the money borrowed is calculated using the formula below:
\(Simple \: interest = \frac{principal × rate × time}{100}\)
The simple interest on the money after 2 years is:
Simple interest = $500 × 3 × 2/100
Simple interest = $30
Amount of money owed the parents = $500 + $30 = $530.
Therefore, the interest to be paid on the loan is $30 and the total amount owed the parents is $530.
Learn more about simple interest at: https://brainly.com/question/25793394
#SPJ2
