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

Question

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] · Answer 1 · 2022-04-03T19:55:58+03:00

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