Question

Sally wants to purchase a new car, and its price is $35,000. Since Sally does not have enough money, she would like to get a loan from Sun Trust Bank with a simple interest rate of 4.5% for 6 years. What is the final cost of her new car?

Answer 1

The formula to calculate the final cost of Sally's new car:

C = 35000 x (1 + 4.5/100)^6 = 45579.1 dollar

Hope this helps!

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