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prisoha [69]
3 years ago
9

Your brother is going to buy a car when he graduates, but he doesn't have enough money to pay for it in cash. He takes a loan ou

t at a bank that charges 4% simple interest. If the initial cost of the car is $18,500 and he takes out a 5-year loan, what is the total amount your brother will be paying for the cost of his car?
Mathematics
1 answer:
Nutka1998 [239]3 years ago
5 0
Year 1 - 18500 x 1.04 = 19240
Year 2- 19240 x 1.04 = 20009.6
Year 3- 20009.6 x 1.04 = 20809.984
Year 4- 20809.984 x 1.04 = 21642.3834
Year 5- 21642.3834 x 1.04 = 22508.0784

The answer rounded is $22508 so your brother will have to pay $22508 for his car

Hope this helps :)
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