Question

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 1

The total amount of money that Stephen would pay his uncle is equal to $10,600.

How to calculate simple interest.

Mathematically, simple interest is calculated by using this formula:

I = PRT

Where:

• I is the simple interest.

• P is the principal.

• R is the interest rate.

• T is the time measured in years.

Given the following data:

Interest rate = 2% = 0.02.

Principal = $10,000.

Time = 3 years.

Substituting the given parameters into the formula, we have;

I = 10000 × 0.02 × 3

I = $600.

Amount of balance;

A = I + P

A = 600 + 10,000

A = $10,600.

Read more on simple interest here: brainly.com/question/24341207