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lakkis [162]
3 years ago
9

A certain bank offers a car loan with a fixed annual interest rate. Justine applied for the loan and used the entire amount to b

uy a car worth $43,000. He had to pay the bank for five years for a total amount of $51,600. How much would be the yearly interest if Justine borrowed $50,000 instead? *
0 points
Mathematics
1 answer:
natita [175]3 years ago
8 0

Answer: $10000

Step-by-step explanation:

From the question,

Principal = $43000

Time = 5 years

Rate = Unknown

Simple Interest = $51,600 - $43000 = $8600

We need to calculate the rate of interest which will be:

Interest = PRT/100

8600 = (43000 × 5 × Rate) / 100

Cross multiply

8600 × 100 = 215000 × Rate

Rate = 860000 / 215000

Rate = 4%

Assuming Justine borrowed $50,000 instead, the yearly Interest will be:

= (50000 × 5 × 4%)

= 50000 × 5 × 0.04

= $10000

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