Question

Shana bought a used car for $5,800 with a loan at a simple interest rate of 3% for 6 years. How much will the total be after she pays it off in 6 years?

Answer 1

$6,844

Explanation:

We can use the simple interest formula for this:

`A = P (1 + rt)`

P = initial balance

r = annual interest rate

t = time

First, lets change 3% into a decimal:

3% ->
`(3)/(100)` -> 0.03

Now, plug the values into the equation:

`A=5,800(1+(0.03)6)`

`A=6,844`

The total after 6 years will be $6,844