Ashley borrows $5,200 to purchase a car. If the loan has a 3.25% interest rate over 4 year, how much total money does Ashley owe
To calculate the total amount Ashley owes, we first need to calculate the interest charged on the loan. The formula to calculate the interest is:
Interest = Principal * Rate * Time
Let's calculate the interest using the given values:
Principal = $5,200
Rate = 3.25% or 0.0325 (in decimal)
Time = 4 years
Interest = $5,200 * 0.0325 * 4
Interest = $676
Now, to find the total amount Ashley owes, we add the interest to the principal:
Total amount owed = Principal + Interest
Total amount owed = $5,200 + $676
Total amount owed = $5,876
Therefore, Ashley owes a total of $5,876. Answer: \boxed{5876}.