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, tradein, 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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