Question

Colton took out a loan from the bank to purchase a car. If he borrowed $17,240 at a simple interest rate of 8.25%, how much total will he have paid after 5 years?

Answer 1

Colton will have to pay 24,351.5 USD after 5 years.

Step-by-step explanation:

Given:   Principal amount (P) = $17,240

              Rate of interest (r) =  8.25 %

               Time (t) = 5 years

By the formula,

                SI=Prt/100

                    = 17240*8.25*5/100

                      = 7111.5 USD

Amount =Principal+SI

               = 17,240+7111.5

                = 24351.5 USD