A farmer borrowed $2000 at a simple interest rate of 20% per annum, Calculate the total payable after 2 years

To calculate the total amount payable after 2 years, we first need to calculate the simple interest.

Step 1: Calculate the Simple Interest The formula for simple interest is: I = PRT/100 Where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time (in years)

In this case, P = $2000, R = 20% and T = 2 years.

So, I = (2000 * 20 * 2) / 100 = $800

Step 2: Calculate the Total Payable Amount The total amount payable is the sum of the principal amount and the interest.

So, Total Payable = P + I = $2000 +$800 = $2800

Therefore, the farmer will have to pay a total of $2800 after 2 years.