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MrRissso [65]
3 years ago
11

You purchase a car using a $20,000 loan with a 5% simple interest rate.

Mathematics
1 answer:
hammer [34]3 years ago
3 0
Simple interest = Cost Price + (Interest Percentage of Cost Price × number of years or months we are paying off)

a) SI = £20 000 + (5% of £20 000 × 4)
SI = £20 000 + (£1000 × 4)
SI = £20 000 + £4000 = £24 000

b) SI = £20 000 + (5% of £20 000 × 3)
SI = £20 000 + (£1000 × 3)
SI = £20 000 + £3000 = £23 000

£24 000 - £23 000 = £1000 that you saved!
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