Question

Colton took out a loan from the bank to purchase a car. If he borrowed $17,240 at a simple interest rate of 8.25%, how much total will he have paid after 5 years?

Answer 1

Colton will have to pay 24,351.5 USD after 5 years.

Explanation:

Given: Principal amount (P) = $17,240

Rate of interest (r) = 8.25 %

Time (t) = 5 years

By the formula,

SI=Prt/100

= 17240*8.25*5/100

= 7111.5 USD

Amount =Principal+SI

= 17,240+7111.5

= 24351.5 USD