Posted by **HEYME** on Wednesday, March 16, 2011 at 4:36am.

Kate borrowed $19500 to buy a car. She paid the money back, plus interest in equal monthly repayments of $370 for the next 5 years

How much did she pay in interest?

Working out please :)

- Maths -
**Reiny**, Wednesday, March 16, 2011 at 8:18am
To find the monthly interest rate i, you will have to solve this complicated equation.

19500 = 370( 1 - (1+i)^-60)/i

You will have to use either a computer program or use iteration to do that.

I found the annual interest rate to be around 5.3% with this online calculator

http://www.onlineloancalculator.org/

set balance = 19500

set downpayment, trade-in, and sales tax = 0

set interest rate = 5.3

to get a payment of $370.68

by adjusting the interest rate, you might get the payment closer to $370.00

## Answer This Question

## Related Questions

- math - mr.thomas wants to buy a boat. he must make 548 monthly payments to pay ...
- algebra - mr.thomas wants to buy a boat. he must make 548 monthly payments to ...
- algebra - mr.thomas wants to buy a boat. he must make 548 monthly payments to ...
- Maths B - Kate is thinking about investing $45000 for 5 years. She deposits her ...
- math - May Ling borrowed $2500.00 for vehicle repairs from her parents. She ...
- math - Diane Van Os decided to buy a new car since her credit union was offering...
- Algebra - Joanie takes a $6000 loan to pay for her car. The interest rate on the...
- Maths Investments - Kate is thinking about investing $60 000 for 4 years. She ...
- Maths (Investments) - Kate is thinking about investing $60 000 for 4 years. She ...
- Math - Joanie takes a $6,000 loan to pay for her car. The annual interest reate...

More Related Questions