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24 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You purchase a car using a $20,000 loan with a 5% simple interest rate. Suppose you pay the loan off after 2 years. How much interes…

24 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You purchase a car using a $20,000 loan with a 5% simple interest rate. Suppose you pay the loan off after 2 years. How much interes…
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24 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You purchase a car using a $20,000 loan with a 5% simple interest rate.
Suppose you pay the loan off after 2 years. How much interest do you save by paying the loan off sooner? Show your work.

User Mahmoh
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8.7k points

1 Answer

5 votes
You would have to change that 5% into 0.05 and multiple it by 2 you get 0.1.Now,multiple 0.1 by 20000 and you get 2000.
User Heather QC
by
8.6k points
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