Question

Phillip is buying a car for $32,000. He will take out a loan for 3.2% simple interest per year. How much interest will he pay on his car loan after 3 years?

Answer 1

$3,072

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3.2%/100 = 0.032 per year,

then, solving our equation

I = 32000 × 0.032 × 3 = 3072

I = $ 3,072.00

The simple interest accumulated

on a principal of $ 32,000.00

at a rate of 3.2% per year

for 3 years is $ 3,072.00.