SOLUTION: You take out a loan of $15,000 to purchase a car. If your loan is for 3 years at a simple interest rate of 10.5%, find out how much interest and the total amount paid for the lo

Algebra.Com
Question 1194762: You take out a loan of $15,000 to purchase a car.
If your loan is for 3 years at a simple interest rate of 10.5%, find out how much interest and the total amount paid for the loan.

Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235)   (Show Source): You can put this solution on YOUR website!
I=prt
I=15000*0.105*3=$4725 interest paid
total amount paid back is that plus the original loan or $19,725.

Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!
You take out a loan of $15,000 to purchase a car.
If your loan is for 3 years at a simple interest rate of 10.5%, find out how much interest and the total amount paid for the loan.
Total amount paid, or Future Value of the $14,000 loan, or FV = P(1 + TR) = 14,000(1 + 3 * .105) = $19,725.

Of the $19,725 paid, $15,000 was the principal or loan amount, so interest paid on the loan = $19,725 - $15,000 = $4,725.

RELATED QUESTIONS

If you take out a loan at 9% interest rate for 5 years, and the interest you ow is... (answered by ikleyn)
Alice took out a simple interest loan to purchase carpet for her house. The interest on... (answered by Boreal,MathTherapy)
For a car loan using simple interest at a given​ rate, the amount of interest charged... (answered by mananth,MathTherapy,greenestamps,ikleyn)
A compay borrows 91,000 for 5 years at a simple interest rate of 15.5%. Find the interest (answered by mananth)
Find the monthly payment for the loan indicated. (Round your final answer to two decimal... (answered by MathLover1)
You take out Php 20,000 loan at a 5% interest rate compounded annually. How much will you (answered by Theo)
You take out Php 20,000 loan at a 5% interest rate compounded annually. How much will... (answered by Alan3354)
You are the owner of four Taco Bell restaurant locations. You have a business loan with... (answered by CPhill)
At graduation, you have a student loan of $19,000. The loan has a fixed annual interest... (answered by ikleyn,math_tutor2020)