Question

jessy took out a loan of $16,500 over 5 years at 4.2% interest to purchase a new car. how much will she pay in interest on the loan. A)$693 B)$3,465 C)$34,650

Answer 1

B

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.2%/100 = 0.042 per year,

then, solving our equation

I = 16500 × 0.042 × 5 = 3465

I = $ 3,465.00

The simple interest accumulated

on a principal of $ 16,500.00

at a rate of 4.2% per year

for 5 years is $ 3,465.00.