Answer: Noah paid $6591 on his car loan.
Step-by-step explanation:
The amount of money paid as down payment for the car is
20/100 × 25350 = 5070
Therefore, the amount paid to finance the remaining cost of the car is
25350 - 5070 = $20280
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
P = 20280
R = 6.5%
T = 5 years
I = (20280 × 6.5 × 5)/100 = $6591
