Cara needs a loan for $10,000 to purchase a car. which loan option would be the worst option with the most amount of interest? question 4 options: 2 year loan with a 4.75% simple interest rate 2.5 year loan with a 4% simple interest rate 3 year loan with a 4.25% simple interest rate 5 year loan with a 3% simple interest rate

The case 4-   5 year loan with a 3% simple interest yields MOST interest.

Step-by-step explanation:

Here, P = 10,000

Now, we need to calculate the Simple Interest in difference cases.

SIMPLE INTEREST  =

CASE : 1 Time = 2 year, Rate  = 4.75%

⇒SIMPLE INTEREST  =

                                   = 950

So, SI on $10,000 for 2 years on Rate 4.75% is $950.

CASE : 2 Time = 2 .5 year, Rate  = 4%

⇒SIMPLE INTEREST  =

                                   = $1000

So, SI on $10,000 for 2.5 years on Rate 4% is $1000.

CASE : 3 Time = 3 year, Rate  = 4.25%

⇒SIMPLE INTEREST  =

                                   = 1275

So, SI on $10,000 for 3 years on Rate 4.25% is $1275.

CASE : 4 Time = 5 year, Rate  =3%

⇒SIMPLE INTEREST  =

                                   = 1500

So, SI on $10,000 for 5 years on Rate 3% is $1500.

Hence, the case 4 yields the MOST amount of interest.

simple interest rate 5 year loan with a 3% simple interest rate is option 4

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step-by-step explanation:

basically 2/5.

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