2
practice examMultiple Choice

Practice Exam

Question 2 • Advanced Financial Algebra

Julia takes a car loan of $5,000 at a simple interest rate of 6% per annum. If she plans to pay back the loan in 3 years, what will be the total interest and the amount she will owe at the end of 3 years?

Answer
A
Interest: $300, Total Owed: $5,300
B
Interest: $300, Total Owed: $4,700
C
Interest: $900, Total Owed: $5,900
D
Interest: $900, Total Owed: $4,100
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