Ricardo purchased a car for $12,500. He was able to provide a down payment of $3,000 and then he had to get a loan for the remaining amount owed on the car. The bank gave him a loan to repay with payments spread out over three years, Ricardo must pay back the full amount borrowed as well as 7% extra to the bank.

a. what’s the principal?

b. what is the timeframe of this loan?

c. what is the interest rate?

d. calculate the simple interest Ricardo will pay,