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To determine which loan option results in the least amount of interest, we can calculate the total interest for each option using the simple interest formula:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest,
- $ P $ is the principal (loan amount, in this case \$12,000),
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time in years.

Let’s calculate the interest for each option:

1. **Option A:**
   - Principal $ P = 12,000 $
   - Rate $ r = 5.2\% = 0.052 $
   - Time $ t = 4 $ years
   \[
   I_A = 12,000 \times 0.052 \times 4 = 2,496
   \]

2. **Option B:**
   - Principal $ P = 12,000 $
   - Rate $ r = 4.2\% = 0.042 $
   - Time $ t = 5 $ years
   \[
   I_B = 12,000 \times 0.042 \times 5 = 2,520
   \]

3. **Option C:**
   - Principal $ P = 12,000 $
   - Rate $ r = 4.7\% = 0.047 $
   - Time $ t = 6 $ years
   \[
   I_C = 12,000 \times 0.047 \times 6 = 3,384
   \]

4. **Option D:**
   - Principal $ P = 12,000 $
   - Rate $ r = 8.4\% = 0.084 $
   - Time $ t = 3 $ years
   \[
   I_D = 12,000 \times 0.084 \times 3 = 3,024
   \]

### Conclusion:
- The total interest for each option:
  - A: \$2,496
  - B: \$2,520
  - C: \$3,384
  - D: \$3,024

**Option A** results in the least interest (\$2,496). Therefore, the 4-year loan with a 5.2% interest rate is the best option.

Would you like further details or have any questions?

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Here are 5 related questions to expand this topic:
1. What is the formula for calculating total loan repayment?
2. How does increasing the loan term affect total interest paid?
3. What is the difference between simple interest and compound interest?
4. How can early repayment impact the total interest on a loan?
5. How do banks determine the interest rate for car loans?

**Tip:** Always aim for a lower interest rate, but also consider the loan term—longer loans can accumulate more interest even with lower rates!

A customer will borrow $12,000 to buy a car. Which loan option would allow the customer to pay the least amount of interest?

Learn how to calculate simple interest on a $12,000 car loan with different interest rates and loan terms. Compare four loan options to determine which results in the least interest paid over time. Ideal for high school students studying personal finance or algebra.

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