The amount Jim owes in interest if he pays it back in 4 years is $160
From the question, we are to calculate how much Jim owes in interest
Using the simple interest formula,
I = PRT
Where I is the interest
P is the principal
R is the rate
and T is the time
From the given information,
P = $500
R = 8% = 8/100 = 0.08
T = 4 years
Putting the parameters into the formula, we get
I = 500 × 0.08 × 4
I = $160
Hence, the amount Jim owes in interest if he pays it back in 4 years is $160
Learn more on Simple interest here: https://brainly.com/question/20690803
#SPJ1
