what is the total amount you have to pay in 2 years if you borrow P10,000 at a simple interest rate of  8% per year

To calculate the total amount you have to pay after 2 years when borrowing ₱10,000 at an 8% simple interest rate per year, you can use the simple interest formula:

\[
\text{Simple Interest} (I) = P \times r \times t
\]

Where:
- \( P \) = Principal (₱10,000)
- \( r \) = Interest rate per year (8% or 0.08)
- \( t \) = Time in years (2 years)

First, calculate the interest:
\[
I = 10,000 \times 0.08 \times 2 = 1,600
\]

So, the interest for 2 years is ₱1,600.

To find the total amount to be paid after 2 years, you add the interest to the principal:
\[
\text{Total Amount} = P + I = 10,000 + 1,600 = 11,600
\]

Thus, the total amount you have to pay after 2 years is **₱11,600**.

Would you like more details on how this calculation works?

Here are some related questions:
1. How would the total change if the interest rate were 10%?
2. What would happen if the loan period were 3 years instead of 2?
3. Can you explain the difference between simple and compound interest?
4. How would monthly payments be calculated if this were an installment loan?
5. What would be the total if only ₱5,000 were borrowed?

**Tip:** Simple interest is easier to calculate but differs from compound interest, which grows more rapidly over time.

What is the total amount you have to pay in 2 years if you borrow ₱10,000 at a simple interest rate of 8% per year?

Find out how to calculate the total amount due after borrowing ₱10,000 at a simple interest rate of 8% per year over 2 years. This guide provides a step-by-step solution using simple interest formulas, suitable for students in Grades 6-8.

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