Question

jamal is going to borrow 14000 from his credit union to buy a used car. the APR is 7.0% and the length of the loan is 4 years. how much will jamal pay in interest

Answer 1

The formula to use here would be:

A = P(1+r)^t  where P is the principal (starting) amount, r is the rate of interest, and t is time. Knowing this, plug in your values:

A = 14,000(1+0.07)^4 once worked out, you should get $18,351.14414 < this is the total amount he would be paying at the end of 4 years. to find the interest, subtract this amount from the principal amount (14,000):

$18,5351.14414 - 14,000 = 4,351.14414 < this is the amount of interest. Round your answer. 

Answer: Jamal will pain $4,351.14 interest.