Question

Noah bought a new car costing 25350. He made a 20% down payment on the car and financed the remaining cost of the car for 5 years at 6.5%. How much interest did Noah pay on his car loan?

Answer 1

Answer:its $6591

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

Answer 2

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