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:
[tex]Simple \: interest = \frac{principal × rate × time}{100}[/tex]
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.
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