malia obtains a college loan in the amount of $18,500 for 4 years at a simple - interest rate of 4.8%. she…

malia obtains a college loan in the amount of $18,500 for 4 years at a simple - interest rate of 4.8%. she does not begin to repay the loan until the end of 4 years. what is the total cost of the loan at the end of 4 years?

malia obtains a college loan in the amount of $18,500 for 4 years at a simple - interest rate of 4.8%. she does not begin to repay the loan until the end of 4 years. what is the total cost of the loan at the end of 4 years?

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal

The annual interest rate $r = 4.8%=0.048$. The principal amount $P=$18500$ and the time $t = 4$ years.

Step3: Calculate the interest

Substitute the values into the formula: $I=Prt=18500\times0.048\times4$. $I = 18500\times0.192=$3552$.

Step4: Calculate the total cost of the loan

The total cost of the loan $A$ is the sum of the principal and the interest, so $A=P + I$. $A=18500 + 3552=$22052$.

Answer:

$22052$