Question

To buy a car, Mitchell borrowed $17,000 at an annual (yearly) simple interest rate of 9%. During his first year of this loan, he will owe the bank $1530 in interest.

Answer 1

Answer: True

Explanation:

(1) 100% - 9% = 91% = .91

(2) .91 x 17,000 = 15470

(3) 17,000 - 15,470 = 1'530