HELP ASAP! PLEASE!
1. You purchase a car using a $13,500 loan with a 5% simple interest rate.
(a) Suppose you pay the loan off after 6 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.
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a) P=$13500 , R=5
let, N=6
simple interest= P×R×N÷100
simple interest= $13500×5×6÷100
simple interest= $4050
b) P=$13500, R=5
let, N=2
simple interest=P×R×N÷100
simple interest=$13500×5×2÷100
simple interest=$1350
save by paying=$4050-$1350=$2700
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