haley needs to take out a $14,000 loan to buy a car. which options will she pay the least amount of…

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=$14000$.

Step2: Convert months to years for option A

For option A, $t=\frac{36}{12}=3$ years and $r = 0.035$. Then $I_A=14000\times0.035\times3=$1470$.

Step3: Convert months to years for option B

For option B, $t=\frac{24}{12}=2$ years and $r = 0.045$. Then $I_B=14000\times0.045\times2=$1260$.

Step4: Convert months to years for option C

For option C, $t=\frac{18}{12}=1.5$ years and $r = 0.05$. Then $I_C=14000\times0.05\times1.5=$1050$.

Step5: Convert months to years for option D

For option D, $t=\frac{30}{12}=2.5$ years and $r = 0.025$. Then $I_D=14000\times0.025\times2.5=$875$.

Answer:

D. A 30 - month loan with a 2.5% annual simple interest rate