Answer:
The total amount paid for the loan can be calculated as follows:
Total amount = Principal + Interest
Where Principal is the amount borrowed, and Interest is the additional amount charged for borrowing the money.
Given:
Principal (P) = $3200
Interest rate (r) = 5% = 0.05 (as a decimal)
Time (t) = 4 years
Using the simple interest formula:
Interest = P × r × t
Interest = $3200 × 0.05 × 4
Interest = $640
Therefore, the total amount paid for the loan is:
Total amount = $3200 + $640
Total amount = $3840
Hence, the total amount paid for the loan is $3840.
Step-by-step explanation: