ACTIVITY 2: INDIVIDUAL WORK. Your teacher has decided to lend your group R 2000 to assist with the project. However, you are required to choose between the following 2 options to repay your teacher later. a) Calculate the total amount that must be repaid if you choose Option 1 (simple interest).

The formula for simple interest ($I$) is given by:

$$I = P \times r \times t$$

where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years.

Given:
Principal ($P$) = R 2000
Interest rate ($r$) = 12% per annum = $\frac{12}{100} = 0.12$
Time ($t$) = 2 years

Substitute these values into the formula:

$$I = 2000 \times 0.12 \times 2$$

$$I = 240 \times 2$$ $$I = \text{R } 480$$

The total amount ($A$) to be repaid is the principal plus the simple interest:

$$A = P + I$$ $$A = 2000 + 480$$ $$A = \text{R } 2480$$

The total amount that must be repaid if you choose Option 1 is:

$$\text{R } 2480$$