Question

jamal is going to borrow $14,000 from his credit union to buy a used car. The APR is 7.0% and the length of the loan is 4 years. How much will Jamal pay in interest ?

Answer 1

Answer: Jamal will pay $4351.14 in interest.

Step-by-step explanation:

Since we have given that

Amount Jamal is going to borrow = $14000

Length of the loan = 4 years

Rate of interest on loan = 7%

Interest Jamal needs to pay is given as

$Amount=P(1+\frac{r}{100})^n\\\\Amount=14000(1+\frac{7}{100})^4\\\\Amount=14000(1+0.07)^4\\\\Amount=14000(1.07)^4\\\\Amount=\ 18351.14$

As we know the formula for "Interest":

$Amount-Principal=Interest\\\\18351.14-14000=\ 4351.14$

Hence, Jamal will pay $4351.14 in interest.

Answer 2

His total amount of interest will be $2,091.88