A bank makes an auto loan for $10,000 at an annual rate of 6 percent. Assuming no repayment is made during the period, after two years the borrower will owe

Question

Quizplus · Accepted Answer

Using the formula for simple interest, we can find the total amount owed after two years:
Interest = P * r * t
Interest = $10,000 * 0.06 * 2
Interest = $1,200

Total amount owed = principal + interest
Total amount owed = $10,000 + $1,200
Total amount owed = $11,200

Therefore, the correct answer is C) $11,236.

A Bank Makes an Auto Loan for $10,000 at an Annual