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olya-2409 [2.1K]
3 years ago
10

Lucy took out a $15,000 to buy her new car. The bank charged her 8% simple interest rate for the term of 5 years. What is the en

ding balance Lucy needs to pay at the end of 5 years?
Mathematics
1 answer:
MA_775_DIABLO [31]3 years ago
5 0

Answer:

<h2>$21000</h2>

Step-by-step explanation:

This problem is on simple interest calcultion

A=P(1+r*n)

 where

A=accumulated amount (final)

P= principal amount (initial), $15,000

r=interest written as decimal, 8% = 8/100= 0.08

n=number of years, 5years

Substituting into the expression we have

A=15000(1+0.08*5)

A= 15000(1+0.4)

A=15000(1.4)

A=$21000

<h2>Hence the ending balance that lucy would pay is $21000</h2>
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