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blsea [12.9K]
3 years ago
12

You purchase a car using a $20,000 loan with a 5% simple interest rate.

Mathematics
1 answer:
vladimir1956 [14]3 years ago
8 0
I use this formula:
Money = Loan x ( 1 + % )^month
In 4 years you have to pay 20,000x(1+5%)^48 = 208,025 dollars.
In 2 years you must pay 20,000x(1+5%)^24 = 64,501 dollars. Hence, you save $143,524.
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