Question

Sara bought a car for $15700 with interest rate of 5 3/7% and the contract is for 7 years.

Answer 1

1. How much interest will Sara owe?

She will owe 5,966 dollars

2. How much will the payments be with a seven year agreement?

Sara will pay 21,666 dollars

Explanation:

The simple interest formula is as follows:

$A=P(1+rt) \\ \\ \\ Where: \\ \\ A: \ is \ the \ Final \ Investment \Value \\ \\ P: \ is \ the \ Principal \ amount \ of \ money \ to \ be \ invested \\ \\ r: \ is \ the \ rate \ of \ interest \\ \\ t: \ is \ \ Number \ of \ Time \ Periods$

First, converting r percent to r a decimal

$r = (5 \frac{3}{7})\%=(5+\frac{3}{7}))\%=\frac{38}{7}\% \\ \\ r=\frac{38/7}{100}=\frac{19}{350} \ per \ year$

Solving our equation:

$A=15700 (1+\frac{19}{350}\times 7) \\ \\ A=15700(\frac{69}{50}) \\ \\ \boxed{A=\ 21,666}$

So Sara will owe in interest the following amount of money:

$I:Interest \\ \\ \\ I=21,666-15,700 \\ \\ \boxed{I=\ 5,966}$

Finally, answering the questions:

1. How much interest will Sara owe?

She will owe 5,966 dollars

2. How much will the payments be with a seven year agreement?

Sara will pay 21,666 dollars

Learn more:

Simple interest: brainly.com/question/11911443

#LearnWithBrainly