Michelle is trying to buy a car that costs $35,550, and she has saved up $20,700. She borrowed the remaining amount that she nee

Question

3 years ago

8

Michelle is trying to buy a car that costs $35,550, and she has saved up $20,700. She borrowed the remaining amount that she nee

ded from a finance company. She now owes a total of $19,365 to the finance company. How much is the simple interest that accrued on this loan based on the original amount borrowed?

Mathematics

1 answer:

Dimas [21] · Answer 1 · 2022-07-31T01:23:06+03:00

Answer: $ 4,515

Step-by-step explanation:

$\\$ The cost of the car she wanted to buy = $35,550

$\\$ Her savings = $20,700

$\\$ That means she needs( $35,550 - $20,700) more in order for her to buy the car.

$\\$ Amount borrowed from the finance company = $35,550 - $20,700

$\\$ = $ 14,850

$\\$ Since she now owes the financial company a total of $19,365, then the interest accrued by the loan she borrowed is given by:

$\\$ $19,365 - $ 14,850

$\\$ = $4,515