Question

Jin took out a 6-year loan for $18,000 to buy a new car. He has to pay 2% simple interest on the loan. How much will Jin have paid in all after the 6 years

Answer 1

At the end of 6 years Jin pays the amount $ 20,160 in total.

Explanation:

The Principal Value(P) = $18,000

Time(T) = 6 years

Rate of Interest(R) = 2%

Simple Interest =
`(P * R * T)/(100)`

So, SI =
`(18,000 * 2 * 6)/(100)`

= $2,160

So, the interest amount = $2,160

Now, total amount to be paid = Principal Value + Interest Value

Amount = $18,000 + $2,160 = $ 20,160

Hence, at the end of 6 years Jin pays $ 20,160.