The total amount that must be repaid in 3 months is $4326.
Step-by-step explanation:
It is given that,
- The amount borrowed is 4,200 which is the principal amount.
- The interest rate is 12%.
- The time period is 3 months.
Now, to calculate the interest amount for 3 months, the interest formula is used.
Interest, I = P×r×t
where,
- P is the principal amount 4,200
- r is the interest rate 12% = 12/100 = 0.12
- t is the time period in years = 3/12
Interest = 4200 × 0.12 × 3/12
Interest = 126
Therefore, the interest amount for 3 months is $126.
The total amount that must be repaid in 3 months = borrowed amount + interest amount for 3 months.
⇒ 4200 + 126
⇒ 4326 dollars.
The total amount that must be repaid in 3 months is $4326.
