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Answer:
the interest owed is 1684.8
Step-by-step explanation:
Formula for simple interest =
I = Prt, where P is amount borrowed, r for interest rate and t for time.
Since the first three years is 1.6% interest we can write:
I = 15600 x 0.016 x 3
= 748.8
Then for the following 3 years the interest rate is 2%:
I = 15600 x 0.02 x 3
= 936
Adding the values gives us 1684.8