If you borrow \( \$ 600 \) for 3 years at an annual interest rate of \( 6 \% \), how much will you pay altogether?

To find out how much you will pay altogether when borrowing \( \$600 \) for 3 years at an annual interest rate of \( 6\% \), we can use the formula for calculating the total amount paid on a loan with simple interest: \[ A = P(1 + rt) \] where: - \( A \) is the total amount to be paid, - \( P \) is the principal amount (the initial amount borrowed), - \( r \) is the annual interest rate (in decimal form), - \( t \) is the time in years. ### Step 1: Identify the known values - \( P = 600 \) - \( r = 6\% = 0.06 \) - \( t = 3 \) ### Step 2: Substitute the values into the formula Now we can substitute the known values into the formula: \[ A = 600(1 + 0.06 \cdot 3) \] ### Step 3: Calculate the interest First, calculate \( 0.06 \cdot 3 \): \[ 0.06 \cdot 3 = 0.18 \] ### Step 4: Substitute back into the formula Now substitute this back into the equation: \[ A = 600(1 + 0.18) = 600(1.18) \] ### Step 5: Calculate the total amount Now calculate \( 600 \cdot 1.18 \): \[ A = 600 \cdot 1.18 = 708 \] ### Final Answer Thus, the total amount you will pay altogether after 3 years is \( \$708 \).