Acelynn borrows $1337 to buy a four-wheeler. The annual interest rate is 4% for the 14-year loan.
How much interest will she pay for the money borrowed?
Responses
A$53.48
$53.48
B$748.72
$748.72
C$534.80
$534.80
D$2085.72
To calculate the interest paid for the money borrowed, we can use the formula:
Interest = Principal (loan amount) x Interest Rate x Time
In this case, the principal is $1337, the interest rate is 4% (or 0.04 as a decimal), and the time is 14 years. Plugging these values into the formula, we get:
Interest = $1337 x 0.04 x 14 = $748.72
Therefore, Acelynn will pay $748.72 in interest for the money borrowed.
The correct response is: $748.72