Question

Darren is purchasing a car that costs $10,000. He is taking out a simple interest loan at an annual rate of 3%. If he makes monthly payments over a period of 6 years, how much is his monthly payment?

$138.89
$163.89
$168.92
$180.12

Answer 1

B

Explanation:

i'm pretty sure it's right but could be wrong

Answer 2

well, let's take a peek, hmmm 10000 bucks at 3% over 6 years hmmm

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$10000\\ r=rate\to 3\%\to (3)/(100)\dotfill &0.03\\ t=years\dotfill &6 \end{cases} \\\\\\ A=10000[1+(0.03)(6)] \implies \boxed{A = 11800}~\hfill \cfrac{\stackrel{total}{11800}}{\underset{months}{72}}\approx \underset{per~month}{163.89}`