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aliina [53]
3 years ago
10

How much is the final cost of my $29,990 car at 6.5%

Mathematics
1 answer:
zheka24 [161]3 years ago
7 0

The period required to pay for the car is not given. However let us assume this interest rate of 6.5% is per annum, on simple interest  terms.

I= PRT

where I is the interest accrued, P is the principal, R is the rate and T is the time.

If the car is paid for in one year then the final cost will be:

I = 29990 × 6.5% × 1

6.5% must be expressed as a decimal fraction so  we divide by 100 to get 0.065

I= 29990 × 0.065 × 1

I = 1,949.35

29990 + 1949.35 =  31939.35 dollars.

If the car is paid for in five years on simple interest terms then the final cost will be :

I = 29990 × 0.065 ×5 = 9,746.75

29990 + 9.746.75 =  39,736.75 dollars


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