As per simple interest, Jim owes $180 in interest.
Jim owes a balance of $680 for his loan.
What is a simple interest?
"By definition, simple interest is the interest amount for a particular principal amount of money at some rate of interest."
Given, the loan amount is P = $500.
The rate of interest is i = 8% = 0.08.
The duration is [tex]4\frac{1}{2}[/tex] years t = 4.5 years.
Therefore, the interest after the mentioned period
= (P × i × t)
= $(500 × 0.08 × 4.5)
= $180
Therefore, Jim owes $180 in interest if he pays it back in mentioned time period.
The balance that Jim owes for loan is
= $(500 + 180)
= $680
Learn more about simple interest here: https://brainly.com/question/23242722
#SPJ2
