4 a customer will borrow $12,000 to buy a car. which loan option would allow the customer to pay the least…

Explanation:

Step1: Recall 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. Here, $P=$12000$.

Step2: Calculate interest for option F

For option F: $t = 4$ years, $r=0.052$. Then $I_F=Prt=12000\times0.052\times4 = 12000\times0.208=$2496$.

Step3: Calculate interest for option G

For option G: $t = 5$ years, $r = 0.042$. Then $I_G=Prt=12000\times0.042\times5=12000\times0.21=$2520$.

Step4: Calculate interest for option H

For option H: $t = 6$ years, $r = 0.047$. Then $I_H=Prt=12000\times0.047\times6=12000\times0.282=$3384$.

Step5: Calculate interest for option J

For option J: $t = 3$ years, $r = 0.084$. Then $I_J=Prt=12000\times0.084\times3=12000\times0.252=$3024$.

Answer:

F. A 4 - year loan with a 5.2% annual simple interest rate