Use estimation to select the best response. Do not calculate. Assume that interest rates are close to 10%. If you purchase a new car for $11,000, and finance it for 3 years, then the amount of interest you would expect to pay is about ______.
A) $3,300
B) $330
C) $110
D) $33,000
E) $11,000

Question

Quizplus · Accepted Answer

To estimate the amount of interest, we can multiply the total cost of the car by the interest rate and the length of the loan in years. So, 10% of $11,000 is $1,100 per year, and over 3 years, that would be $3,300 in interest. Therefore, the best choice is A, $3,300.

Use Estimation to Select the Best Response