Question

Shana bought a used car for $5,800 with a loan at a simple interest rate of 3% for 6 years. How much will the total be after she pays it off in 6 years?

Answer 1

Answer:

$6,844

Step-by-step explanation:

We can use the simple interest formula for this:

$A = P (1 + rt)$

P = initial balance

r = annual interest rate

t = time

First, lets change 3% into a decimal:

3% -> $\frac{3}{100}$ -> 0.03

Now, plug the values into the equation:

$A=5,800(1+(0.03)6)$

$A=6,844$

The total after 6 years will be $6,844