Question

wilma borrowed $12,000 from her uncle to buy a used car. her uncle charged simple interest at 3.2% for 5 years. find the total amount (principal and interest) that wilma paid to her uncle. wilma paid $ to her uncle (simplify your answer.)

Explanation:

Step1: Calculate the simple - interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=\$12000$, $r = 0.032$ (since $3.2\%=0.032$), and $t = 5$ years.
$I=Prt=12000\times0.032\times5$
$I = 12000\times0.16=\$1920$

Step2: Calculate the total amount

The total amount $A$ that needs to be repaid is the sum of the principal $P$ and the interest $I$.
$A=P + I$
$A=12000+1920=\$13920$

Answer:

$13920$