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klio [65]
3 years ago
6

Leo buys a new car for $17,600. The simple interest rate is 8.4% and the amount of loan (plus simple interest) is repayable in 5

years. What is the total amount that must be repaid?
Round your answer to the nearest dollar and do not round until the final answer.
Mathematics
1 answer:
Dmitrij [34]3 years ago
7 0

Answer:

$24,992

Step-by-step explanation:

The equation for simple interest is I = PRT where I is the interest earned, P is the principal deposited/borrowed, R is the rate as a decimal, and T is time in years.

I = (17,600)(0.084)(5)

I = 7,392

The total amount that must be repaid is the interest + the principal:

7,392 + 17,600 = 24,992

Please let me know if you have questions

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