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:______
Mathematics · College · Mon Jan 18 2021
Answered on
Given the statement:
Stephen borrows $10,000 from his uncle at a simple interest rate of 2%. He repays the loan in full after 3 years.
P = $10,000
r = 2% or 0.02 (Divided by 100)
t = 3
Determine how much money did Stephen paid his uncle back in total.
Formula for Simple Interest:
A = P ( 1 + rt)
Solution:
Substitute the value of the P, r and t to the formula for future interest.
A = $10,000 ( 1 + (0.02)(3))
A = $10,000 ( 1.06 )
A = $10,600
Final answer:
A = $10,600