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You borrow $10,000 to buy a car. The simple interest rate is 3%. You pay the loan off after 6 years. What is the total amount you paid for the loan?

2 Answers

5 votes

$11800 is the answer

User Nick Retallack
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5 votes

Answer:

The total amount of money needed to pay off the car after 6 years would be $11,800.

Explanation:

Write down the facts:

  • The car costs $10,000
  • The interest rate is 3%
  • And you finished paying the loan off after 6 years

Interest = $10,000 * 0.03 * 6

This being $10,000, 3% interest rate and over 6 years.

Interest= $1800

This amount we found is the additional amount (interest) you have to pay with the $10,000. Now, to find the total amound we add the interest and $10,000.

Total amount = 10,000 + $1800

Total amount = $11,800

Therefore the total amount paid over 6 years (including the 3% interest rate) would be $11,800. I hope this helped!!!

User Deamentiaemundi
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7.2k points