To determine how much the man will pay at the end of the year after borrowing [tex]$\$[/tex]2,000.00[tex]$ at a simple interest rate of \(8\%\), we need to follow these steps:
1. Calculate the simple interest:
Simple interest is calculated using the formula:
\[
\text{Interest} = \text{Principal} \times \text{Interest Rate} \times \text{Time}
\]
Here:
- Principal (\(P\)) = \$[/tex]2000.00
- Interest Rate ([tex]\(r\)[/tex]) = 8% (which is divided by 100 to convert it to decimal form, so [tex]\(0.08\)[/tex])
- Time ([tex]\(t\)[/tex]) = 1 year
Plugging in these values:
[tex]\[
\text{Interest} = \$2000.00 \times 0.08 \times 1
\][/tex]
Performing the multiplication:
[tex]\[
\text{Interest} = \$160.00
\][/tex]
2. Calculate the total amount to be paid:
The total amount to be paid at the end of the year is the sum of the principal and the interest.
[tex]\[
\text{Total Amount} = \text{Principal} + \text{Interest}
\][/tex]
Plugging in the values:
[tex]\[
\text{Total Amount} = \$2000.00 + \$160.00
\][/tex]
Performing the addition:
[tex]\[
\text{Total Amount} = \$2160.00
\][/tex]
Therefore, the man will pay a total of \$2160.00 at the end of the year.
