Clarissa needs a $2,500 loan in order to buy a car. How much interest would she owe if she took out a 24 - month loan with a 4.2

Question

3 years ago

8

5% annual simple interest rate. Hint : 24 months needs to be converted to years

1 answer:

oksano4ka [1.4K] · Answer 1 · 2022-05-16T20:52:40+03:00

4 0

Answer:

$212.50

Step-by-step explanation:

Interest = P * r * t

P= principal

r = rate

t = time

r = 0.0425

t = 2 years = 24 months

P = 2500

Interest = 2500 * 0.0425 * 2 = $212.50