Answer:
Jack will pay a total of $27,550 for the truck including interest.
Explanation:
To calculate the total cost of the truck including interest, we need to first calculate the total interest Jack will pay over the course of the loan.
We can use the following formula to calculate the total interest:
Total interest = principal * interest rate * number of years
Substituting the values from the problem into this formula, we get:
Total interest = 20,500 * 0.07 * 5
Total interest = 7,050
To calculate the total cost of the truck including interest, we need to add the total interest to the principal (the cost of the truck without interest).
Total cost = principal + total interest
Total cost = 20,500 + 7,050
Total cost = 27,550
Therefore, Jack will pay a total of 27,550 for the truck including interest.