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 ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> 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      Log On


   

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) About Me  (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(10551) About Me  (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.