Solve the Problem. -Sammy Borrowed $10,000 to Purchase a New Car at an Car

question 59

Multiple Choice

Solve the problem.
-Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. She is to pay it back in equal monthly payments over a 5-year period. How much total interest will be paid over the period of the loan?
Round to the nearest dollar.

• A) $92
• B) $3630
• C) $1435
• D) $3045

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Definitions:

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, unlike the public sector, which is controlled by the government.

Credit Demand

The desire or willingness of consumers and businesses to borrow money at a given interest rate.

Discretionary Policy

Economic or fiscal policy based on judgment and decision-making in response to changing economic conditions, rather than set by predetermined rules.

National Saving

The total amount of savings generated within a country, including both private savings by households and public savings by the government.