A young engineer borrowed P12,000 at an interest rate of 10 percent per annum. Find the lump sum that he will pay at the end of 4 years.

To solve this problem, we need to use the formula for simple interest which is I = PRT, where:

• I is the interest
• P is the principal amount (the initial amount of money)
• R is the rate of interest per year
• T is the time the money is invested for in years

In this case, the principal P is P12,000, the rate of interest R is 10% or 0.10 (in decimal form), and the time T is 4 years.

Step 1: Calculate the interest I = PRT I = 12000 * 0.10 * 4 I = P4800

This means that the interest accrued over the 4 years is P4800.

Step 2: Calculate the total amount to be paid back The total amount to be paid back is the sum of the principal and the interest.

Total = P + I Total = 12000 + 4800 Total = P16800

So, the young engineer will pay a lump sum of P16800 at the end of 4 years.