To solve this problem, we need to calculate the simple interest first and then add it to the principal to find the total amount after 3 years.
Step 1: Calculate the Simple Interest
On this step, we need to use the given formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
We know that:
Principal = $4480
Rate = 8%, but we need it in decimal form, which is 0.08
Time = 3 (in years)
Now, we can plug these values into the formula:
Simple Interest = (4480 * 0.08 * 3)
After calculation, the simple interest comes out to be $1075.2
Step 2: Calculate the Total Amount
The total amount after 3 years will be the sum of the principal and the interest accrued.
Total Amount = Principal + Simple Interest
Total Amount = $4480 + $1075.2
After adding, the total amount comes out to be $5555.2
Therefore, will be the total amount after 3 years.
Answer: $5555.2