Question

Alyssa wants to buy a new car and is planning to take out a loan to pay for the car.

Her loan amount is $22,000

Her interest rate is 1.5%

She plans to pay the loan off in 4.00 years.

What is the amount interest that Alyssa will pay on her loan?

Round your answer to 2 decimal places!

Answer 1

Answer: the amount of interest that Alyssa will pay on her loan is $1320

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = $22000

R = 4.5%

T = 4 years

Therefore,

I = (22000 × 1.5 × 4)/ 100

I = 132000/100 = $1320