Respuesta :
The total amount paid = $3840
What is simple interest formula?
"A = P(1 + rt)
Where A = Total Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest in decimal
R = Rate of Interest as a percent
[tex]r=\frac{R}{100}[/tex]
t = Time Period"
For given question,
P = $3200
t = 4 years
R = 5%
[tex]\Rightarrow r=\frac{5}{100}\\\\ \Rightarrow r=0.05[/tex]
Using the formula of simple interest,
[tex]A=P(1+rt)\\\\A=3200(1+(0.05\times 4))\\\\A=3200(1+0.2)\\\\A=3200\times 1.2\\\\A=\$ 3840[/tex]
Therefore, the total amount paid = $3840
Learn more about simple interest here:
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