jessica borrow$9000 from the bank to purchase a used car.the bank has given her an interest rate of 7.5%annually for a period of 2 1/2 year
what is the total amount she will have to pay back at the end of the loan
A)$1687.50
b)$9,000
c)$10,687.50
D)$16,875
Jessica borrow $8,500.00 7.5
Well, well, Jessica is diving headfirst into the world of car loans! Here's the deal, my friend. Jessica borrowed $9,000 from the bank, and they sneakily slapped a 7.5% annual interest rate on her loan for a period of 2 1/2 years. So, to find out the total amount she has to cough up at the end, we need to do some math.
First, let's calculate the interest she has to pay. 7.5% of $9,000 is $675 per year. Since the loan term is 2 1/2 years, that means Jessica would pay a total of 2.5 times the yearly interest, which is $1,687.50.
But that's just the interest! Jessica still has to repay the original amount she borrowed, which is $9,000. So, if we add everything together, the total amount she'll have to pay back at the end of the loan is $1,687.50 (interest) + $9,000 (the borrowed amount) = $10,687.50.
So, the answer is option C) $10,687.50. Now, Jessica better start saving those pennies!
To calculate the total amount Jessica will have to pay back at the end of the loan, we need to consider the amount borrowed and the interest rate.
The interest rate is 7.5% annually, and the loan period is 2 1/2 years. To calculate the interest amount, we can use the formula:
Interest = Principal x Rate x Time
Where,
Principal = $9,000
Rate = 7.5% = 0.075 (as a decimal)
Time = 2.5 years
Interest = $9,000 x 0.075 x 2.5
Interest = $1687.50
Now, to calculate the total amount she will have to pay back, we add the interest to the principal amount:
Total amount = Principal + Interest
Total amount = $9,000 + $1687.50
Total amount = $10,687.50
So, the total amount she will have to pay back at the end of the loan is $10,687.50
Therefore, the correct answer is option C) $10,687.50.
To determine the total amount Jessica will have to pay back at the end of the loan, we need to calculate the interest on the borrowed amount.
First, we need to find the total interest accrued over the 2 1/2 year period. The formula to calculate simple interest is:
Interest = (Principal * Rate * Time)
Here, the principal is $9,000, the rate is 7.5% (0.075 as a decimal), and the time is 2.5 years. Plugging these values into the formula:
Interest = (9000 * 0.075 * 2.5)
Next, we can calculate the total amount Jessica will have to pay back by adding the principal to the interest accrued:
Total amount = Principal + Interest
Total amount = 9000 + (9000 * 0.075 * 2.5)
Calculating this expression:
Total amount = 9000 + 1687.50
The total amount Jessica will have to pay back at the end of the loan is $10,687.50.
Therefore, the correct answer is C) $10,687.50.
9,000 * 7.5 * 2.5 = total interest
Add that sum to 9,000.