Question

Sandra applies for a loan at the bank for $15,650 to help pay for a new car. The bank will charge 8.5% for 36 months. Choose the simple interest amount AND the total amount she will pay by the end of the loan.

Answer 1

$19,640.75

Explanation:

Given;

Principal = $15,650

Rate = 8.5%

Time = 36months = 3years

Substitute and get the interest;

Simple interest = 15,650 * 8.5 * 3/100

Simple interest = 399075/100

Simple interest = $3990.75

Amount = Principal + Interest

Amount = $15,650 + $ $3990.75

The total amount she will pay by the end of the loan = $19,640.75