Answer: The total amount that Paul will end up paying is $1441
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
P = 1310
R = 2%
T = 5 years
I = (1310 × 2 × 5)/100 = $131
The total amount that Paul will end up paying is
1310 + 131 = $1441
