Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Tara needs an $8,000 personal loan.

Which loan option would require her to pay back the least amount of money?


36-month loan with a 9% annual simple interest rate

42-month loan with a 7% annual simple interest rate

48-month loan with an 8% annual simple interest rate.

54-month loan with a 6% annual simple interest rate

Sagot :

pstnonsonjoku

The least amount is paid back in a 42-month loan with a 7% annual simple interest rate.

What is simple interest?

The term simple interest refers to a type of interest that is paid only on the principal and not on the interest. We have to note that the time and the interest rate all contribute to increasing the amount of money to be paid back.

In the first case, the amount to be paid back is;

A = $8,000 + ($8,000 * 9 * 3/100)

= $10160

In the second case;

A = $8,000 + ( $8,000 * 7 * 3.5/100)

A =$ 9960

In the third case;

A = $8,000 + ($8,000 * 8 *4/100)

A = $10560

In the fourth case;

A = $8,000 + ($8,000 * 6 * 4.5/100)

A = $10160

Hence, the least amount is paid back in a 42-month loan with a 7% annual simple interest rate.

Learn more about simple interest: https://brainly.com/question/26437826?

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.