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

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