Question

Nellie has a bankruptcy on her credit report and therefore pays higher interest rates on her current loans. She took out a car loan for $45,000 payable for 6 years at an interest rate of 15%. If she had not applied for bankruptcy, she would have been able to take out the loan at a rate of 6%. Approximately how much more in interest over the life of the loan does Nellie have to pay?
a. $68,510.16
b. $53,696.16
c. $32,206.32
d. $14,814.00

Answer 1

The amount of extra interest that will be paid is $24300

Since Nellie took out a car loan for $45,000 payable for 6 years at an interest rate of 15%, the interest that she will pay will be:

= ($45000 × 6 × 15) / 100

= $40500

On the other hand, if she hasn't applied for bankruptcy, the amount that she will pay will be:

= ($45000 × 6 × 6) / 100

= $16200

Therefore, the difference between the interest will be:

= $40500 - $16200

= $24300

The correct option is $24300. The given options are incorrect.

Read related link on:

brainly.com/question/25052422

Answer 2

Answer:

the awnser is D. $14,814.00