Hector has several financial decisions to make in the near future. He is planning to buy a car, open a savings account, and place money in a
certificate of deposit (CD) so that he may purchase a boat when he retires
. Hector has asked that we help him decide which options are best for him.
The car Hector has chosen costs $24,000. Most car loans are calculated using simple interest, a method which interest is calculated only once per year. His first option is a loan with 3% interest over six years. How much will Hector pay over the course of the next six years if he chooses this option?