An online lending company is offering simple interest personal loans based on consumer credit scores. With your credit score, you can borrow $2900$⁢2900 for 33 years at an interest rate of 11.27%11.27%. How much money will you pay the lending company at the end of 33 years? Round your answer to the nearest cent, if necessary.

Formulas

**Simple Interest**

I=PrtI=Prt

**Future Value for Simple Interest**

A=P(1+rt)A=P(1+rt)

**Future Value for Compound Interest**

A=P(1+rn)ntA=P(1+rn)nt

**Future Value for Continuous Compound Interest**

A=PertA=Pert

**Annual Percentage Yield (APY)**

APY=(1+rn)n−1APY=(1+rn)n−1

To solve the problem using simple interest, we will use the **Future Value for Simple Interest** formula:

\[
A = P(1 + rt)
\]

Where:
- $ A $ is the total amount you will pay to the lending company (Future Value).
- $ P = 2900 $ is the principal amount (the amount borrowed).
- $ r = 11.27\% = 0.1127 $ is the annual interest rate (as a decimal).
- $ t = 33 $ is the time period in years.

Now, substitute the values into the formula:

\[
A = 2900(1 + 0.1127 \times 33)
\]

Let's calculate the total amount you will pay at the end of 33 years.The total amount you will pay to the lending company at the end of 33 years is approximately **$13,685.39**.

Would you like more details or have any questions?

Here are 5 related questions to expand on this topic:
1. What is the total interest paid over the 33 years?
2. How would the amount change if the interest rate were 9% instead of 11.27%?
3. What if the loan term was reduced to 20 years—how much would you pay then?
4. How does simple interest compare to compound interest in this situation?
5. What happens if you repay the loan early, say after 10 years?

**Tip:** When dealing with simple interest loans, the interest amount remains the same regardless of when you pay during the loan term.

An online lending company is offering simple interest personal loans based on consumer credit scores. With your credit score, you can borrow $2900 for 33 years at an interest rate of 11.27%. How much money will you pay the lending company at the end of 33 years? Round your answer to the nearest cent, if necessary.

Learn how to calculate the total amount paid for a $2900 loan over 33 years at 11.27% simple interest. This step-by-step guide explains the simple interest formula and future value calculation, ideal for high school students in Grades 9-12.

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