Question

Leo buys a new car for $17,600. The simple interest rate is 8.4% and the amount of loan (plus simple interest) is repayable in 5 years. What is the total amount that must be repaid?

Answer 1

Given;

`P=17,600,r=8.4\text{ \%,}=0.084,t=5`

The simple interest, I, is;

`\begin{gathered} I=17600*0.084*5 \\ \\ I=7392 \end{gathered}`

Thus, the amount to be repaid is;

`\begin{gathered} A=P+I \\ \\ A=17600+7392 \\ \\ A=24992 \end{gathered}`

The amount that must be repaid is $24,992