A local car dealership is holding a year-end event because new car models have just been released. Declan has $35,000 to spend on a car. The car Declan decides to buy for his family costs $35,000. However, it is part of the year-end event, which means he receives a 15% discount on the new car. Declan plans to put the money he saves on the car into a new bank account. The bank account has a yearly simple interest rate of 4%, paid at the end of each year. If Declan does not add any other money to this bank account, it will take 6 years for Declan's bank account to reach $6,720.

Question

Westie

Mathematics

28 August, 00:22

A local car dealership is holding a year-end event because new car models have just been released. Declan has $35,000 to spend on a car. The car Declan decides to buy for his family costs $35,000. However, it is part of the year-end event, which means he receives a 15% discount on the new car. Declan plans to put the money he saves on the car into a new bank account. The bank account has a yearly simple interest rate of 4%, paid at the end of each year. If Declan does not add any other money to this bank account, it will take 6 years for Declan's bank account to reach $6,720.

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Answers (1)

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Mylee Davila · Answer 1

The amount Declan saves from the discount is 15% of $35,000

which is $5250

This Amount $5250 is the amount Declan invests in the bank

This is the Amount the bank pays at the end of the time T of saving

Step-by-step explanation:

The simple Interest is calculated by

I = (P x R x T) / 100

where I is the Interest

R is the rate in percentage

T is the time the money will be saved

Another Important quantity is the Amount A

A = I + P