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andrew-mc [135]
2 years ago
12

Raymond bought a car for $40,000. He took a 20,000 loan from a bank at an interest rate of 15% per year for a 5 - year period. W

hat is the total amount ( interest and loan) that he would have to pay rhe bank at the end of 5 years
Mathematics
1 answer:
jenyasd209 [6]2 years ago
3 0

Answer:

$35,000

Step-by-step explanation:

The amount that would be repaid = amount borrowed + interest earned on loan

interest earned on deposit can be determined by determining the simple interest

Simple interest = principal x time x interest rate

principal = the amount deposited = 20,000

Time = the duration of the deposit =5  

interest rate = the percentage on deposit that would be earned = 15

20,000 x 5 x 0.15 = $15,000

total = 20,000 + 15,000 = $35,000

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