which of the amounts below is the total interest scott will pay when he is approved for a 9 - month loan at…

which of the amounts below is the total interest scott will pay when he is approved for a 9 - month loan at an interest rate of 2.9% for a new, $12,500 company car? $271.88 $282.54 $259.89 $264.63

which of the amounts below is the total interest scott will pay when he is approved for a 9 - month loan at an interest rate of 2.9% for a new, $12,500 company car? $271.88 $282.54 $259.89 $264.63

Answer

Explanation:

Step1: Convert time to years

The loan is for 9 - months. Since 1 year has 12 months, $t=\frac{9}{12}= 0.75$ years.

Step2: Use simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$12500$, $r = 0.029$ (since $2.9%=0.029$), and $t = 0.75$. Then $I=12500\times0.029\times0.75$.

Step3: Calculate the interest

$I = 12500\times0.029\times0.75=12500\times0.02175 = 271.875\approx271.88$.

Answer:

A. $271.88$