[tex]Interest = Principal*Rate*Time[/tex]
In this case the Principal is P8500, the rate is 12% and the time is 3 years.
[tex]Interest=8500* \frac{12}{100} *3 \\=85*12*3 \\ 3060[/tex]
(Note that 12% can be represented as 12/100)
The amount that he must pay is P3060
