Question

Clarke borrows $16,000 to buy a car. He pays simple interest at an annual rate of 6% over a period of 3.5 years. How much does he pay altogether?

Answer 1

The total amount he will altogether be: $19360

Explanation:

Given

• Amount Borrowed = P = $16,000

• Interest rate = r = 6% = 6/100 = 0.06

• Time period = t = 3.5 years

To determine

• Amount of interest = I

• Total Amount altogether = A

Using the formula

I = Prt

substituting the values P = 16,000, r = 0.06, t = 3.5 years

I = 16,000 × 0.06 × 3.5

I = $3360

Thus, the interest amount = $3360

Therefore, the total amount he will altogether:

A = P + I

A = 16,000 + 3360

A = $19360

Therefore, the total amount he will altogether be: $19360