A person borrows 12,000 at an interest rate of 8% per annum for 3 years. What is the total interest to be paid? 2,880 3,000 2,400 2,000

Question

Answer 1

To calculate the total interest to be paid, we can use the formula for simple interest:

where:-

is the principal amount (the initial amount borrowed),-

is the annual interest rate (in percentage),-

is the time the money is borrowed for (in years).Given:-

-

yearsSubstitute these values into the formula:

So, the total interest to be paid is

.Therefore, the correct answer is

.

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