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DedPeter [7]
2 years ago
14

Buying a $36,000 new hybrid SUV with $3000 paid up front and the rest borrowed at 4.2%

Mathematics
1 answer:
Studentka2010 [4]2 years ago
3 0

From the calculations, the total amount paid for the SUV is $43,708.

<h3>What is compound interest?</h3>

The term compound interest has to do with an interest that is charged in both the principal and the interest.

In this case, the amount that was borrowed is  $36,000 - $3000 = $33,000. Using the formula;

A = P(1 + r/n)^nt

P =  $33,000

r = 4.2%

n = 52

t = 5 years

A = 33,000(1 + 0.042/52)^(52 * 5)

A = $40,708

Total amount paid = $40,708 + $3000 = $43,708

Learn more about compound interest:brainly.com/question/14295570?

#SPJ1

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