Answer:
a) Simple interest paid = $360
b) Total repayment amount = $6360
Step-by-step explanation:
It is given that:
Principal, P = $6000
Rate of interest, R = 2%
Time, T = 3 years
<em>(a) Total interest paid</em>:
<u>Formula</u> for Simple Interest is given as:
![S.I. = \dfrac{P \times R \times T}{100}](https://tex.z-dn.net/?f=S.I.%20%3D%20%5Cdfrac%7BP%20%5Ctimes%20R%20%5Ctimes%20T%7D%7B100%7D)
Putting the values of P, R and T to find out Simple Interest:![\\\Rightarrow S.I. = \dfrac{6000 \times 2 \times 3}{100}\\\Rightarrow S.I. = \$360](https://tex.z-dn.net/?f=%5C%5C%5CRightarrow%20S.I.%20%3D%20%5Cdfrac%7B6000%20%5Ctimes%202%20%5Ctimes%203%7D%7B100%7D%5C%5C%5CRightarrow%20S.I.%20%3D%20%5C%24360)
<em>(b) Total repayment amount</em>:
We know that formula for total amount is given as:
<em>Amount = Principal + Simple Interest</em>
Amount = 6000 + 360 = $6360
So, total repayment amount = $6360
So, the answers are:
a) Simple interest paid = $360
b) Total repayment amount = $6360