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

To calculate the total interest to be paid, we can use the formula for simple interest:<br /><br />\[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]<br /><br />where:<br />- \( P \) is the principal amount (the initial amount borrowed),<br />- \( R \) is the annual interest rate (in percentage),<br />- \( T \) is the time the money is borrowed for (in years).<br /><br />Given:<br />- \( P = \$12,000 \)<br />- \( R = 8\% \)<br />- \( T = 3 \) years<br /><br />Substitute these values into the formula:<br /><br />\[ \text{Simple Interest} = \frac{12000 \times 8 \times 3}{100} \]<br /><br />\[ \text{Simple Interest} = \frac{28800}{100} \]<br /><br />\[ \text{Simple Interest} = 288 \]<br /><br />So, the total interest to be paid is \( \$288 \).<br /><br />Therefore, the correct answer is \( \$288 \).