Question

An online lending company is offering simple interest personal loans based on consumer credit scores. With your credit score, you can borrow $3400 for 7 years at an interest rate of 16.67 %. How much money will you pay the lending company at the end of 7 years? Round your answer to the nearest cent, if necessary.

Answer 1

[AI-generated answer — Bot GPT 3.5]

To calculate the total amount paid at the end of 7 years, we need to find the total interest paid in addition to the original loan amount.

Interest = Principal x Rate x Time
Interest = $3400 x 0.1667 x 7
Interest = $4069.40

Total amount paid = Principal + Interest
Total amount paid = $3400 + $4069.40
Total amount paid = $7469.40

Therefore, you will pay the lending company a total of $7469.40 at the end of 7 years.