Question

Chase buys a new car for $23,500. the simple interest rate is 4.2% and the amount of loan (plus simple interest) is repayable in 6 years. what is the total amount that must be repaid?

Answer 1

The total amount that must be repaid is $28,098.

Step-by-step explanation:

To find the total amount that must be repaid, we need to calculate the simple interest and add it to the original loan amount. Simple interest is calculated using the formula: I = P * r * t, where I is the interest, P is the principal amount (original loan amount), r is the interest rate, and t is the time in years.

In this case, the principal amount is $23,500, the interest rate is 4.2%, and the time period is 6 years. Plugging in the values, we have: I = 23500 * 0.042 * 6 = $5,598.

The total amount that must be repaid is the sum of the principal amount and the interest: 23500 + 5598 = $28,098.