Final answer:
Kenny repays a total of $6563.04 for a $3390 loan with 1.3% monthly interest over 6 years, calculated using the simple interest formula.
Step-by-step explanation:
To calculate the total amount that Kenny ends up repaying for a $3390 loan at 1.3% simple interest per month, after 6 years, we first need to compute the total interest and then add it to the principal amount.
Simple interest can be calculated using the formula:
I = P × r × t
Where:
- I is the interest
- P is the principal amount
- r is the interest rate per period
- t is the number of periods
Given that:
- P = $3390
- r = 1.3%
- t = 6 years × 12 months/year = 72 months
The total interest (I) is calculated as follows:
I = $3390 × 0.013 × 72
I = $3173.04
To find the total amount repaid, we add the interest to the principal:
Total Repayment = Principal + Interest
Total Repayment = $3390 + $3173.04
Total Repayment = $6563.04
Therefore, the total amount that Kenny ends up repaying is $6563.04, which corresponds to option A.