The amount to be paid for the loan is $248.
'Simple interest is the interest amount for a particular principal amount of money at some rate of interest.
According to the given problem,
Principal amount (P) = $200
Rate of interest (r) = 12%
Time period (t) = 2 years
We know,
Final amount to be paid with interest (A) = P( 1 + rt )
= 200{ 1 + ( 0.12 × 2 )
= 200( 1 + 0.24 )
= 200 × 1.24
= $248
Hence, we can conclude, we have to pay $248 for the loan.
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