Answered

Clarke borrows $16,000 to buy a car. He

pays simple interest at an annual rate of 6%

over a period of 3.5 years. How much does

he pay altogether?

A $18,800

B $19,360

C $19,920

D $20,480

Verified Answer :

The answer is choice B $19,360 because we multiply the annual interest rate of 6% or .06 by 3.5 years and we get a total interest of .21.  The answer is found by performing $16,000 times 1.21 and we get $19,360.

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