Question

Zaley buys a used car for $8,000. She takes out a loan at 8.5% simple interest for 4 years to pay for the car. How much will Zaley end up paying for the car? *

Answer 1

$10,720

Explanation:

Since she pays 8.5% interest per year, in 4 years she will have to pay

4*8.5 = 34% interest.

34% of $8,000 equals

8,000*(34/100) = $2,720

So, she will have to pay

$8,000 + interest = $8,000 + $2,720 = $10,720