Answer: The total amount that he would have paid after 3 years is
$1183
Step-by-step explanation:
We would apply the formula for determining simple interest which is
expressed as
I = PRT/100
Where
I represents interest paid on the amount owed.
P represents the principal or initial amount owed.
R represents interest rate
T represents the duration for which the amount was owed in years.
From the information given,
P = $795
R = 16.25
T = 3 years
Therefore,
I = (795 × 16.25 × 3)/100
I = $388
The total amount that he would have paid after 3 years is
795 + 388 = $1183
