You borrow $2,000 for a period of 4 years. You are charged simple interest at a rate of 3%. How much will you repay at the end of 4 years?

Explain

I = Prt

I = 2,000 * 0.03 * 4

I = 240

2,000 + 240 = ?

Oh wait, all I have to do is multiply all the numbers then add the money with the answer I got when I multiplied?

Yes, you owe the principal of 2,000 plus the total interest which is 240

so the answer is 2.240

To calculate the total amount repaid at the end of 4 years with simple interest, you need to consider three components: the principal (initial amount borrowed), the interest rate, and the time period.

First, calculate the interest amount using the formula:
Interest = Principal × Interest Rate × Time

In this case, the principal is $2,000, the interest rate is 3% (or 0.03 as a decimal), and the time period is 4 years. Plugging in these values, we get:
Interest = $2,000 × 0.03 × 4 = $240.

Next, add the interest to the principal to find the total amount repaid:
Total Repayment = Principal + Interest = $2,000 + $240 = $2,240.

Therefore, you will have to repay a total of $2,240 at the end of 4 years.