stephen borrows $10,000 from his uncle at a simple interest rate of 2%. he repays the loan in full after 3…

stephen borrows $10,000 from his uncle at a simple interest rate of 2%. he repays the loan in full after 3 years. how much money did stephen pay his uncle back in total?

stephen borrows $10,000 from his uncle at a simple interest rate of 2%. he repays the loan in full after 3 years. how much money did stephen pay his uncle back in total?

Answer

Explanation:

Step1: Identify the simple - interest formula

The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate, and $t$ is the time in years. Here, $P=$10000$, $r = 0.02$ (since $2%=0.02$), and $t = 3$ years.

Step2: Calculate the interest

$I=Prt=10000\times0.02\times3=$600$

Step3: Calculate the total amount repaid

The total amount $A$ repaid is the sum of the principal $P$ and the interest $I$. So, $A=P + I=10000+600=$10600$

Answer:

$10600$