Question

10. Marie can afford a $250 per month car payment. She's found a 5 year loan at 7% interest.

Answer 1

Answer:

A) Marie can afford Car expensive of = $2139

B)The total amount she pay to loan company = $ 3000

C) The interest amount = $861  

Step-by-step explanation:

Given as :

Marie can afford car payment of =$ 250 per month

                                                      =$ = 250 × 12 = $3000 per year

She Found a loan  for time period of = 5 years

The interest rate applied = 7%

Now ,

Amount of payment  = Principal × $( 1+ \frac{Rate}{100})^{Time}$

Or, $3000 = The original value of car × $( 1+ \frac{7}{100})^{5}$

Or, $3000 = The original value of car × 1.4025

Or, The original value of car = $\frac{3000}{1.4025}$

So, The original value of car = $2139.03

Now, Compound Interest = CI = Amount - Principal

Or,                                         CI = $3000 - $2139

So,                                         CI = $861

Hence Form the above solution, it is found that :

A) Marie can afford Car expensive of = $2139

B)The total amount she pay to loan company = $ 3000

C) The interest amount = $861   Answer