Ashley borrows $5,200 to purchase a car. If the loan has a 3.25% interest rate over 4 year, how much total money does Ashley owe

Answer 1

To calculate the total amount Ashley owes, we first need to calculate the interest charged on the loan. The formula to calculate the interest is:

Interest = Principal * Rate * Time

Let's calculate the interest using the given values:
Principal = $5,200
Rate = 3.25% or 0.0325 (in decimal)
Time = 4 years

Interest = $5,200 * 0.0325 * 4
Interest = $676

Now, to find the total amount Ashley owes, we add the interest to the principal:
Total amount owed = Principal + Interest
Total amount owed = $5,200 + $676
Total amount owed = $5,876

Therefore, Ashley owes a total of $5,876. Answer: \boxed{5876}.