You borrow R8 000 for 2 years, on the condition that you pay simple interest. How much will you have to pay back?

To calculate how much you'll pay back with simple interest, you can use the formula: Interest = Principal × Rate × Time. Assuming an interest rate of 10% per annum for simplicity, that would mean: Interest = R8,000 × 0.10 × 2 years = R1,600. Therefore, the total amount you’ll repay is the principal plus interest: R8,000 + R1,600 = R9,600. So, you’ll pay back R9,600 at the end of 2 years. Simple interest is a straightforward method that doesn’t compound, so knowing the terms of your loan is crucial. When agreeing to those terms, it's always smart to clarify the interest rate upfront! Avoid common mistakes like forgetting to account for the rate or miscalculating the time frame, as they can significantly affect what you owe in the end.