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:
Putting the values of P, R and T to find out Simple Interest:
<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