Here, we want to calculate the amount that should be paid pack on a loaned amount, given the time frame of the loan and the interest
In financial terms, the amount to be paid back can be calculated using the formula below;
The amount borrowed is referred to the principal while the extra value to be paid back is referred to as the interest
From the question, we already have the principal as $1,200, what is left now is to calculate the interest
Mathematically;
Interest = (principal * rate * time)/100
From the question;
Rate = 3%
Time = 3 years
Substituting these values in the interest equation, we have;
Interest = (1200 * 4 * 3)/100 = 12 * 4 * 3 = $144
Therefore, the amount to pay back will be;
Amount = 1200 + 144 = $1,344
Hence, if you borrow $1200 for 3 years at an annual interest rate of 4%, you pay back $1,344 altogether