SOLUTION: Customer A and customer B each borrowed $17,000 to purchase a car. Their annual interest rate is 3.5% in both cases. a)Customer A pays back the loan with interest after exact

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Question 1107885: Customer A and customer B each borrowed $17,000 to purchase a car. Their annual interest rate is 3.5% in both cases.
a)Customer A pays back the loan with interest after exactly one year.How much will she have to play back?
b)Customer B manages to replay the entire loan after three months.How much does she have to pay back?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
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after 1 year, it is 17000*0.035*1=$595, so $17,595 is paid back.
after 3 months it is 17000*0.035*0.25=$148.75, since 3 months is a quarter year. Pay back is $17,148.75