Question

1. You purchase a car using a $20,000 loan with a 5% simple interest rate.

(a) Suppose you pay the loan off after 4 years. How much interest do you pay on your loan? Show your work.
(b) Suppose you pay the loan off after 2 years. How much interest do you pay on your loan? Show your work.
(c) Do you pay more interest if you pay the loan off after 4 years or after 2 years?

any body go to k12

Answer 1

So basically all you do is this, on your assignment youll see words and stuff that are in colors. They also give you a formula for that. Its really easy.

So, you have 20000, 5%(0.5), 4 and 2. 20000 is blue, 5%(0.5) is orange, 4 and 2 are purple. So you do 20000 x 0.5 and you get 10000. So now you do 10000 x 4 x 2 and you get 80000xxx(or just 80000).

Or do 10000 x 4. Then after that take the result of 10000 x 4 and do x2. :)

I think I should the work enough, and good luck with the assignment.

Hope I helped-Aced

Answer 2

A:4000

B:2000

C: More interest on the 4 year loan

Explanation:

5% of 20000 is 1000 so the amount of years times the amount of interest per year. 4 years is (4x1000=4000) and 2 years is (2x1000) 4000 is greater than 2000.

if this is incorrect it is using rising interests just let me know and ill edit