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NISA [10]
3 years ago
13

Mr. Jennings is shopping for a car loan. He wants to buy a car that costs $18,000. He plans to pay $5,000 in cash and get a loan

for the rest. If the annual interest rate on the loan is 5%, how much interest will he pay in the first year?
Mathematics
1 answer:
Ugo [173]3 years ago
3 0

Answer:

$650

Step-by-step explanation:

Interest = amount of the loan x interest rate x time

Amount of the loan = price of the car - cash payment

$18,000 - $5,000 = $13,000

interest rate = 5%

time = 1 year

$13,000 x 0.05 x 1 = $650

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