at a 48 month loan of $$ \$ 5,500 $$ to make some home improvements. At a simple interest rate of $$ 3,25 \% $$, how much total will she pay?

Question

UpStudy AI · Accepted Answer

To determine the total amount paid on a \$5,500 loan over 48 months (4 years) with a simple interest rate of 3.25%, follow these steps:

### **1. Understand the Simple Interest Formula:**

The formula for simple interest is:

$$
\text{Interest (I)} = P \times r \times t
$$

where:
- $$ P $$ = Principal amount (\$5,500)
- $$ r $$ = Annual interest rate (3.25% or 0.0325 in decimal)
- $$ t $$ = Time in years (4 years)

### **2. Calculate the Interest:**

$$
I = 5500 \times 0.0325 \times 4
$$

$$
I = 5500 \times 0.13 = 715
$$

So, the interest accrued over 4 years is **\$715**.

### **3. Determine the Total Amount Paid:**

$$
\text{Total Payment} = \text{Principal} + \text{Interest} = 5500 + 715 = 6215
$$

### **Final Answer:**

She will pay a total of **\$6,215** over the 48-month loan period.
She will pay a total of \$6,215 over the 48-month loan period.

at a 48 month loan of \( \$ 5,500 \) to make some home improvements. At a simple interest rate of \( 3,25 \% \), how much total will she pay?