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Debbie needs to know how much she will pay on her car loan. Using the simple interest formula, how much will she pay with a principal balance of $12,000, an interest rate of 5 percent, and a 60-month loan?

Answer :

Answer:

how much will she pay with a principal balance of $12,000, an interest rate of 5 percent, and a 60-month loan?   Total amount 13.859. Interest 1.859 Principal 12.000

Explanation

            Due       Interest Principal    Balance

                                   12.000

year 1 2.772 600  2.172 9.828

year 2 2.772 491        2.280 7.548

year 3 2.772 377        2.394 5.154

year 4 2.772 258        2.514 2.640

year 5 2.772 132        2.640 0

              13.859 1.859 12.000

Answer:

The first is A. The second is C.

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