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Elenna [48]
2 years ago
7

Howie wants to get a car loan with 4% simple interest rate. If the car costs $25,000, how much would Howie need to pay back at t

he end of one year, including the interest?
Mathematics
1 answer:
likoan [24]2 years ago
7 0

The amount Howie will pay back at the end of one year is $26000.00

The given parameters are:

P =25000 -- the principal amount

R = 4\% -- the interest rate

T=1 --- the duration

The amount to pay back in this duration is then calculated using:

A = P(1 + RT)

So, we have:

A = 25000(1 + 4\% \times 1)

A = 25000(1 + 4\% )

Express percentage as decimal

A = 25000(1 + 0.04)

A = 25000(1 .04)\\

Multiply

A = 26000

Hence, the amount to pay back is $26000.00

Read more about simple interest at:

brainly.com/question/1115815

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