Question

Connor took out a four year loan to buy a car at 4% simple interest rate. he borrowed $1500 to pay for the car. how much interest will he pay after four years?

Answer 1

Connor will pay $240 in simple interest on his $1,500 loan over a period of four years at a 4% interest rate.

Step-by-step explanation:

To calculate the total amount of simple interest that Connor will pay on his $1,500 car loan over four years at a 4% interest rate, we can use the formula for simple interest: I = P × R × T, where I is the interest, P is the principal amount borrowed, R is the interest rate per period, and T is the time the money is borrowed for, in years.

Plugging Connor's loan details into the formula gives us: I = $1,500 × 0.04 × 4.

Performing the calculation:

• I = $1,500 × 0.04 × 4
• I = $1,500 × 0.16
• I = $240

Hence, Connor will pay $240 in interest over the four-year period.