Question

Zoey takes out a loan of $25,000 to pay for a car. Her interest rate is 3% for 60 months. How much will Zoey pay in total for the car?

Answer 1

Answer: $28750

Explanation:

Since 12 months = 1 year, it should be noted that 60 months = 60/12 = 5 years.

Simple interest = Principal × Rate × Time

= $25000 × 3% × 5

= $25000 × 0.03 × 5

= $3750

The total amount that Joey will pay for the car will be the value of the principal plus the interest which will be:

= $25000 + $3750

= $28750