Fresh features from the #1 AI-enhanced learning platform.Try it free
Fresh features from the #1 AI-enhanced learning platformCrush your year with the magic of personalized studying.Try it free
Question

Simple interest is the amount of money the borrower pays based on the amount borrowed (the principal) for a given period of time (months or years) It is calculated this way: I=prt.I = p r t . If a person borrows $20,000 ( p ) to buy a car, pays 6.95% interest ( r ), and takes 5 years ( t ) to repay the loan, how much will the borrower pay in simple interest?

Solution

Verified
Step 1
1 of 2

The money the borrower will pay in simple interest (I=prt)(I = prt) at

p is the borrows money = 20000 $\ \ \ t is the time to repay the loan = 5 years \ \ \ r is the interest =6.95 % \ \ \ Then$ I = 20000\cdot6.95100\dfrac{6.95}{100} \cdot5 = $6950$

Create an account to view solutions

Create an account to view solutions

Recommended textbook solutions

enVision Algebra 1 1st Edition by Al Cuoco, Christine D. Thomas, Danielle Kennedy, Eric Milou, Rose Mary Zbiek

enVision Algebra 1

1st EditionISBN: 9780328931576 (3 more)Al Cuoco, Christine D. Thomas, Danielle Kennedy, Eric Milou, Rose Mary Zbiek
3,246 solutions
SpringBoard Algebra 1 1st Edition by SpringBoard

SpringBoard Algebra 1

1st EditionISBN: 9781457301513SpringBoard
3,022 solutions
Saxon Algebra 1: Student Practice Workbook 1st Edition by SAXON PUBLISHERS

Saxon Algebra 1: Student Practice Workbook

1st EditionISBN: 9781602775046SAXON PUBLISHERS
3,564 solutions
Big Ideas Math Integrated Mathematics II 1st Edition by Boswell, Larson

Big Ideas Math Integrated Mathematics II

1st EditionISBN: 9781680330687Boswell, Larson
4,539 solutions

More related questions

1/4

1/7