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?

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(1) Answers

Czarny333

You borrow $10,000 to buy a car.
The simple interest rate is 3%.
You pay the loan off after 6 years.
Let's solve for the total amount you need to pay.
=> 10 000 * 0.03 = 300 dollars per year
=> 300 * 6 years = 1800 dollars in 6 years,
=> 10 000 + 1800 = 11 800 dollars.