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You purchase a car using a $20,000 loan with a 5% simple interest rate. (a) Suppose you pay the loan off after 4 years. How much interest do you pay on your loan? Show your work. (b) Suppose you pay the loan off after 2 years. How much interest do you save by paying the loan off sooner? Show your work.

Respuesta :

Answer: 18,000

Step-by-step explanation:

20,000 •.05 • 4 = $ 4,000 interest 1st prt Total of 2,400 second prt- 20,000 •.05 • 2 = $2,000

How much will you save if you divide 20,000 by 2,000?

Answer:

I am pretty sure the answer is 18,000?

Step-by-step explanation:

Hope it helps