To calculate the total amount to be paid on a loan with simple interest, we use the formula:

$A = P(1 + rt)$

Where:

• $A$ is the total amount to be paid,
• $P$ is the principal (the amount borrowed),
• $r$ is the annual interest rate (in decimal form),
• $t$ is the time in years.

Given:

• $P = 10,000.00$,
• $r = 8\% = 0.08$,
• $t = 2 \, \text{years}$.

Now substitute these values into the formula:

$A = 10,000(1 + 0.08 \times 2)$ $A = 10,000(1 + 0.16) = 10,000(1.16) = 11,600$

So, the total amount to be paid after 2 years is P11,600.00.

Would you like more details or have any questions?

Here are 5 related questions to explore further:

1. How do you calculate compound interest for 2 years?
2. What if the interest rate were compounded quarterly?
3. How is simple interest different from compound interest?
4. How would the total amount change if the interest rate were 5% instead of 8%?
5. What is the total interest paid in the above example?

Tip: Always make sure to differentiate between simple and compound interest to avoid confusion in financial calculations.