Question

You borrow 10,000 to buy a car. the simple interest rate is 3%. You pay the loan off after 6 years. What is the total amount you paid for the loan

Answer 1

The answer is $11,800.

Explanation:

The simple interest formula is I = P*r*t. So "P" would be 10,000, "r" would be .03 because you have to divide 3% by 100 = .03, and "t" would be 6. You have to multiply 10,000*.03*6 and you get $1,800, but that is the interest. You need the total amount, so you just add 10,000 to 1,800 and you get $11,800.