SOLUTION: Fred bought a car for $5,600 and later sold it at 90% of the cost price. He spent $1,310 out of the amount received and invested the rest at 6% per annum simple interest. Calculate
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-> SOLUTION: Fred bought a car for $5,600 and later sold it at 90% of the cost price. He spent $1,310 out of the amount received and invested the rest at 6% per annum simple interest. Calculate
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Question 1133907: Fred bought a car for $5,600 and later sold it at 90% of the cost price. He spent $1,310 out of the amount received and invested the rest at 6% per annum simple interest. Calculate the interest earned in 3 years. Found 4 solutions by Shin123, addingup, MathTherapy, greenestamps:Answer by Shin123(626) (Show Source):
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Fred bought a car for $5,600 and later sold it at 90% of the cost price. He spent $1,310 out of the amount received and invested the rest at 6% per annum simple interest. Calculate the interest earned in 3 years.
Correct answer:
IGNORE all other NONSENSICAL answers.
One response shows the total value of the investment, whereas the question only asked for the amount of interest.
Another response looks as if they are doing the right calculations; but they apparently hit some wrong keys on their calculator.
The third response shows the right answer, but without showing any work; so it is maybe of little use to you.
The right calculations are these:
$5600*0.90 = $5040 [he sold it for 90% of what he paid for it]
$5040-$1310 = $3730 [he spent $1310 of it]
$3730*0.06*3 = $671.40 [interest = principal (original amount) times rate (annual percentage) times time (years)]
