Question

Dario borrows $12,000 to buy a car. He borrows the money at a yearly, or annual, simple interest rate of 4.2%. How much more interest will Dario owe if he borrows the money for 5 years instead of 1 year?

ITS URGENT HURRY!!!!!

Answer 1

• $2016 more

Explanation:

• Borrowed amount = $12000
• Interest rate = 4.2% per year simple

Interest in 1 year:

• $12000*4.2/100 = $504

Interest in 5 years:

• $12000*4.2*5/100 = $2520

The difference between 1-year interest and 5-year interest:

• $2520 - $504 = $2016