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2 October, 07:31

Jimmy owes $29,500 for a car loan to be repaid in 36 months. If the interest rate is 7.375%, then how much interest will he pay?

How to solve this problem step-by-step.

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  1. 2 October, 07:46
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    Interest=Principle*rate*time or I=P*r*t

    Principle=29500

    Rate = 7.375% = 0.07375

    Time = 36 months = 3 years

    I=29500*0.07375*3

    I=2175.625*3

    I=6526.875≈6526.88

    Solution: He will pay about $6526.88 in interest.
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