Question

You bought a car for $17,250. You put down $3,000 cash and have to take a loan out to pay for the rest. The car dealership is offering you a loan of $14,250. They say your interest rate will be 6% and you can pay the car off in 10 years. How much money in interest and how much will you have paid back?

Answer 1

Answer:

Interest will be $855 x 10 years= $8,550

Explanation:

Interest

6÷100=0.06

0.06x14,250=$855

$855x10=$8,550.

How much to have paid back

At the end of 10years $8,550 would have been paid as interest

Total sum will be $14,250+$8,550=$22,800 to be paid back.