Question

Ms. Jenson purchased a car. She borrowed

$18,000 for 3 years at an annual simple interest
rate of 7%. How much interest will she pay if
she pays the entire loan off at the end of the
third year?
A) $1,260.00
C) $3,780.00
B) $21,780.00
D) $12,600.00

Answer 1

Answer: C) $3,780.00

Explanation:

1 year = 7% interest rate

3 years = 21% interest rate

21% = 0.21

Take 18000 times 0.21 = $3,780.00