Final answer:
The total amount paid on a 3-year loan of $700 at an annual interest rate of 29% is calculated using the simple interest formula, resulting in a total payment of $1309. None of the provided options is correct.
Step-by-step explanation:
The question you've asked pertains to finding the total amount paid over the term of a loan with a given interest rate. Specifically, we need to calculate the total amount paid on a 3-year loan of $700 at an annual interest rate of 29%.
To find the total paid over the life of the loan, we can use the simple interest formula:
I = PRT
Where:
- I is the interest
- P is the principal amount ($700)
- R is the rate of interest per year (29% or 0.29)
- T is the time the money is borrowed in years (3 years)
When we plug in the values we get:
I = 700 * 0.29 * 3
I = $609
Now we add the original principal to the interest to find the total amount paid:
Total Amount = Principal + Interest
Total Amount = $700 + $609
Total Amount = $1309
Therefore, the correct answer is none of the options provided a), b), c), but instead it should be $1309, which is not listed.