Question

If Sally purchases a car for $22,000 with a 5 year loan having a 2.5% interest rate, how much simple interest will she have to pay on the loan?

Answer 1

2750

Explanation:

simple interest = (22,000*5*2.5)/100

simple interest= 2750

Answer 2

Simple interest = $2750

Explanation:

Principal; P = $22000

Time; t = 5 years

Rate; r = 2.5%

Formula for simple interest is;

i = PRT/100

i = (22000 * 2.5 * 5)/100

i = $2750