MATH SOLVE

6 months ago

Q:
# Thomas borrowed 4800$ to buy a new car. He will be paying 96$ a each month for the next 60 months. Find the simple interest rate for his car loan.

Accepted Solution

A:

Answer:The Rate at which car is loaned is 4 % .Step-by-step explanation:Given as ;The amount borrowed by Thomas to buy new car = $ 4800The time period = 60 months = 5 yearsThe Amount paid per months = $ 96 × 60 = $ 5760Let The rate of interest applied = R % simple interest So, Simple - Interest = Amount - principalOr, Simple - Interest = $ 5760 -$ 4800 = $ 960So, From Simple Interest method Simple Interest = [tex]\dfrac{\textrm Principal \times \textrm Rate \times \textrm Time}{100}[/tex]Or, $ 960 = [tex]\dfrac{\textrm 4800 \times \textrm R \times \textrm 5}{100}[/tex]or, 960×100 = 24000 × R∴ R = [tex]\frac{96000}{24000}[/tex] = 4 %Hence The Rate at which car is loaned is 4 % . Answer