Lindokuhle borrows R4 000 from his father to go on a school trip to Keny He will have to pay the money back in 10 years time (once he is working) His father will charge him a simple interest rate of \( 4 \% \) p.a. How much will Lindokuhle have to repay after the 10 years?

To calculate the total amount Lindokuhle will have to repay after 10 years, you can use the formula for simple interest, which is: Total Amount = Principal + (Principal × Rate × Time). Here, the Principal is R4,000, the Rate is 4% (or 0.04), and the Time is 10 years. So, the interest accrued over 10 years will be: Interest = R4,000 × 0.04 × 10 = R1,600. Adding this to the principal amount gives us: Total Amount = R4,000 + R1,600 = R5,600. Therefore, Lindokuhle will have to repay R5,600 after 10 years. If Lindokuhle was thinking about the potential impact of inflation, he might find that R5,600 won’t have the same purchasing power in 10 years. Fun fact: keeping an eye on savings accounts or even considering investment options could help him grow his money over time! Lindokuhle could also explore budgeting techniques to allocate a portion of his income towards repaying the loan, making the repayment feel less daunting. Setting up a savings plan to tackle this in smaller, manageable chunks could save him from a financial scramble when it’s time to pay back!