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27 May, 17:58

A man borrowed $18,000 to buy a car. If he pays a four and a half percent interest rate, what will the car cost in 3 years? (length of loan)

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  1. 27 May, 18:10
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    Simple interest:

    Final value = principle (starting balance) x interest x time in years

    Fv = PiN

    18,000 x 0.045 x 3 = $2430

    2430 + 18000 = $20430
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