To calculate the total amount Stephen paid back to his uncle after borrowing $10,000 at a simple interest rate of 2% for 3 years, we first need to determine the interest accrued over that period.
The formula for calculating simple interest is:
\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]
Where:
- Principal = $10,000
- Rate = 2% = 0.02 (as a decimal)
- Time = 3 years
Now, substituting the values into the formula:
\[ \text{Interest} = 10,000 \times 0.02 \times 3 \] \[ \text{Interest} = 10,000 \times 0.06 \] \[ \text{Interest} = 600 \]
Now, we add the interest to the principal to find the total amount Stephen paid back:
\[ \text{Total Amount Paid} = \text{Principal} + \text{Interest} = 10,000 + 600 = 10,600 \]
Thus, the total amount Stephen paid his uncle back after 3 years is $10,600.