Question

Mario borrows $16,000 to buy a car. He pays simple interest at an annual rate of 6% over a period of 3.5 years. How much does he pay altogether?

Answer 1

To find the total amount Mario pays altogether, calculate the total interest by multiplying the loan amount, interest rate, and time period. Then add the total interest to the original loan amount.

Step-by-step explanation:

To find the total amount Mario pays altogether, we need to calculate the total interest and add it to the original loan amount. First, we find the total interest by multiplying the loan amount ($16,000) by the interest rate (6%) and the time period (3.5 years):

Total Interest = $16,000 × 0.06 × 3.5 = $3,360

Next, we add the total interest to the original loan amount:

Total Amount = Loan Amount + Total Interest

Total Amount = $16,000 + $3,360 = $19,360

Therefore, Mario pays $19,360 altogether.