Question

A car is purchased with a loan of $8.000 for two years with simple interest. The amount that is paid back is $8,160

Which function represents the interest on this loan after years!

Answer 1

The function that represents the interest on this loan after years is Interest = Principal × Rate × Time.

Step-by-step explanation:

The function that represents the interest on this loan after years can be calculated using the formula for simple interest:

Interest = Principal × Rate × Time

In this case, the principal is $8,000, the rate is unknown, and the time is 2 years. The interest paid back is $8,160, so we can rewrite the formula as:

$8,160 = $8,000 × Rate × 2

Dividing both sides of the equation by $8,000 × 2 gives:

Rate = $8,160 / ($8,000 × 2)

Solving this equation gives a rate of 0.51, or 51%.