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

$r_F = 0.052$, $t_F = 4$. Then $I_F=P\times r_F\times t_F=12000\times0.052\times4 = 12000\times0.208=$2496$.

Step3: Calculate interest for option G

$r_G = 0.042$, $t_G = 5$. Then $I_G=P\times r_G\times t_G=12000\times0.042\times5 = 12000\times0.21=$2520$.

Step4: Calculate interest for option H

$r_H = 0.047$, $t_H = 6$. Then $I_H=P\times r_H\times t_H=12000\times0.047\times6 = 12000\times0.282=$3384$.

Step5: Calculate interest for option J

$r_J = 0.084$, $t_J = 3$. Then $I_J=P\times r_J\times t_J=12000\times0.084\times3 = 12000\times0.252=$3024$.

Answer:

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