Question

HELP you purchase a car using a $22,000 loan with a 6% simple interest rate for 5 years

(a) how much interest do you pay your loan? show your work

(b) what is the total amount that you will pay back? show your work

Answer 1

Answer: (a) $6,600

(b) $28,600

Explanation:

Interest (I) = Principal (P) x rate (r) x time (t)

I = 22,000(0.06)(5)

= 6,600

Accrued (A) = Principal (P) + Interest (I)

A = 22,000 + 6,600

= 28,600