If you borrow \( \$ 200 \) for 6 years at an annual interest rate of \( 2 \% \), how much will you pay altogether? \[ [? ?] \]

To find out how much you'll pay altogether when borrowing \( \$200 \) at an annual interest rate of \( 2\% \) for \( 6 \) years, you'll want to use the formula for simple interest, which is \( A = P(1 + rt) \), where \( A \) is the total amount to be paid, \( P \) is the principal amount (the amount borrowed), \( r \) is the interest rate (as a decimal), and \( t \) is the time in years. Here, \( P = 200 \), \( r = 0.02 \), and \( t = 6 \). Plugging those values into the formula gives us: \[ A = 200(1 + 0.02 \cdot 6) = 200(1 + 0.12) = 200 \cdot 1.12 = 224 \] So, you will pay altogether \( \$224 \). When it comes to loans, understanding the impact of interest over time can be quite eye-opening! Many people don’t realize just how much that little percentage can balloon the final amount if left unchecked. Always be sure to check if you're dealing with simple or compound interest, as that changes the game significantly! Remember, in real-life scenarios, it's essential to budget for your total repayment amount, not just the initial amount borrowed. Setting aside a bit each year can make a huge difference and prevent any surprises when it’s time to settle up!