Dory borrowed $50,000 for 6 months in order to set up her new restaurant, Frying Nemo Fish and Chips. Her brother loaned her the money andcollected 6.25% simple interest. How much interest did Dory repay for this loan and how much total did she repay her brother?

Part a) (2 pts) Which formula is appropriate for this problem? (Simple Interest, Compound Interest, Savings Annuity, Payout Annuity, Monthly Payment on a Loan, Maximum Loan Amount, or one of the Mortgage-specific formulas, Future Value Needed (if making a one-time deposit), Future Value Needed (if making multiple deposits))

Part b) (3 pts) How much interest did Dory have to pay for this loan?

• Write out
  • 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and
  • 2) the correct formula with the numerical values (round your answer to the nearest cent), and
  • 3) write the answer in a complete sentence.

Part c) (2 pts) How much, in total, did Dory have to repay her brother?

• Write out...
  • 1) your work (round your answer to the nearest cent), and
  • 2) write the answer in a complete sentence.