Reflection on Simple Interest Calculation

What is simple interest and how is it calculated?

How do we determine the point at which two individuals owe the same amount?

Answer:

In 20 days, Darren and Fergie will owe the same amounts.

Simple interest is a type of interest that is calculated based on the principal amount of a loan or deposit without taking into account any accrued interest. It does not compound, meaning that the interest is only applied to the initial principal amount.

When calculating the point at which two individuals owe the same amount, we need to consider the initial amounts borrowed, the interest rates, and the time period in which the interest is accumulating. In this case, Darren borrowed $100 at a 10% simple daily interest, while Fergie borrowed $150 at a 5% simple daily interest.

To determine the number of days it takes for Darren and Fergie to owe the same amount, we need to calculate the interest accrued for each of them separately and find the point at which the total amounts owed are equal.