Question

Mario needs a loan to buy a tractor for his farm. He qualified for a loan at 2 different banks.

.
First Bank of Trust
Loan Amount: $25,000
Annual Simple Interest
Rate: 6.5%
Loan Length: 4 years
What is
.
Enter your answer in the box.
.
Valor Bank
Loan Amount: $25,000
Annual Simple Interest
Rate: 4%
Loan Length: 6 years
total amount Mario will pay, including loan amount and interest, for the First Bank of Trust loan?

Answer 1

Answer:$31,500

Explanation:

To calculate the total amount Mario will pay, including the loan amount and interest, for the loan from First Bank of Trust, we need to calculate the interest and add it to the loan amount.

The formula to calculate simple interest is:

Interest = (Loan Amount) x (Interest Rate) x (Loan Length)

Let's plug in the values given:

Loan Amount = $25,000

Interest Rate = 6.5% (or 0.065 as a decimal)

Loan Length = 4 years

Interest = $25,000 x 0.065 x 4 = $6,500

Now, let's calculate the total amount Mario will pay:

Total Amount = Loan Amount + Interest = $25,000 + $6,500 = $31,500

Therefore, the total amount Mario will pay, including the loan amount and interest, for the First Bank of Trust loan is $31,500.