if you borrow $120 for 3 years at an annual interest rate of 5%, what is the total amount of money you will…

Explanation:

Step1: Calculate the simple - interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$120$, $r = 0.05$ (since $5%=0.05$), and $t = 3$ years. $I=Prt=120\times0.05\times3$ $I = 18$

Step2: Calculate the total amount

The total amount $A$ to be paid back is the sum of the principal $P$ and the interest $I$. $A=P + I$ $A=120+18$ $A = 138$

Answer:

$138$