Question

If you borrow $12,000 for 30 months at 6.5% simple interest, what is the total amount you will have to repay?

Answer 1

is this multiple choice ?

Answer 2

a.
$12,065
c.
$21,500
b.
$12,780
d.
$13,950

Answer 3

First you'll need a loan payment formula:

Answer 4

simple interest =Principle × rate × time
then add Principle and interest to find total due

Answer 5

12000 × 0.065 × 2.5 = ?

Answer 6

12000.00 + Interest amount = total due

Answer 7

$12,000 for 30 months at 6.5%
time = 2.5 years
interest = Principal × rate × time
interest = 12,000 * .065 * 2.5 years
interest = 1,950.00
Plus 12,000 principal =
13.950.00 total payment.
which is choice "d".