Question

Clarke borrows 16000 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 answer is $19,360 because we multiply the annual interest rate of 6% or .06 by 3.5 years and we get a total interest of .21. The answer is found by performing $16,000 times 1.21 and we get $19,360.