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Jackie borrows $960 from a loan agency to pay for a washing machine the loan agency charges her a simple 6% and interest rate if she pays back in 4 years how much was the interest​

User Syedfa
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Final answer:

Jackie will pay $230.40 in total interest for a $960 loan with a 6% simple interest rate over 4 years. The calculation is based on the formula for simple interest: Interest = Principal × Rate × Time.

Step-by-step explanation:

The question is about calculating the total interest on a loan with a simple interest rate. In Jackie's case, she borrows $960 at a 6% interest rate for 4 years. The formula to calculate simple interest is Interest = Principal × Rate × Time, where the principal is the amount borrowed, the rate is the annual interest rate (in decimal form), and the time is the number of years the money is borrowed for.

First, convert the interest rate from a percentage to a decimal by dividing by 100. So, 6% becomes 0.06. Then, use the formula:

Interest = $960 × 0.06 × 4

Calculate this to find the total interest Jackie will pay over 4 years:

Interest = $960 × 0.06 × 4 = $230.40.

Therefore, over the course of 4 years, Jackie will pay $230.40 in interest for the washing machine.

User Eric Mickelsen
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