Answer:
The total amount that must be repaid is $2,928.
Step-by-step explanation:
First, you need to know how much interest Nick will be paying every month.
Provided that he borrowed $1,200 with a 12% interest rate, then, you can calculate the interest rate per month by multiplying these numbers.
So, $1,200 × 12% (0.12) = $144 (interest per month)
In order to get the total amount of interest in one year, you can multiply $144 with 12 (12 months).
So, $144 per month × 12 months = $1,728 (the total amount of interest in 1 year)
In order to get the total amount to be repaid, then you have to add the amount which Nick loaned ($1,200) plus the total amount of interest in 1 year.
So, $1,200 + $1,728 = $2,928
The total amount that Nick needs to repay is $2,928.
