Question

Bookmarks Return Submit 1 3.3 Financing with Simple Interest Brittany's car purchasing decisions 1 erd Brittany has decided to get a new car. She has picked out a make and model but doesn't care if she buys new or 5 points What is the total cost of financing the new vehicle? O $32,000 O $163,840 O $31,100 O $33,638.40 s ar 1 pre-owned. The vehicle she has chosen is offering 0% financing for new and 5.12% APR simple interest on pre- 1 2. . owned. The new vehicle is $32,000 and the pre-owned is 2 $31 100. 3 5 points What is the total cost of financing the pre-owned car for 60 months (5 years)? y 4 Type your answer... 5 OM

Answer 1

5.12% means

5.12/100 = 0.0512 (each year)

PreOwned Vehicle Cost = 31,100

For 5 years simple interest, the value would be:

31100 * 0.0512 * 5 = $7961.6

Total have to pay: 31,100 + 7961.6 = $39,061.6