Respuesta :
The Ward saves the interest if he finances $20,000 for 3 years rather than 5 years is $1,000.
What is simple interest?
Simple interest is the concept that is used in many companies such as banking, finance, automobile, and so on.
Ward finances $20,000 to purchase a car.
If he gets a 2. 5% interest rate regardless of loan length.
Interest is given as
Interest = Principal × rate × time
In 3 years, the interest will be
Interest = 20,000 × 0.025 × 3
Interest = $1,500
In 5 years, the interest will be
Interest = 20,000 × 0.025 × 5
Interest = $2,500
The interest will Ward save if he finances the $20,000 for 3 years rather than 5 years will be
Save = 2500 - 1500 = $1,000
More about the simple interest link is given below.
https://brainly.com/question/2793278
