if you borrow $1,200 for 5 years at an annual interest rate of 12%, what is the total amount of money you…

Explanation:

Step1: Identify the simple - interest formula

The formula for simple interest 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.

Step2: Convert the interest rate to decimal

$r=12% = 0.12$

Step3: Calculate the interest

$I = Prt=1200\times0.12\times5$ $I = 1200\times0.6=720$

Step4: Calculate the total amount to be paid back

The total amount $A$ is the sum of the principal $P$ and the interest $I$. So $A=P + I$. $A=1200 + 720=1920$

Answer:

$1920$