Mary bought a red convertible for $14,000. She paid $1,000 down and borrowed the rest on a one year note at 15% interest. How much will she owe at the end of one year
owe= 13000(1.15)
To calculate how much Mary will owe at the end of one year, we need to consider the interest on the borrowed amount.
First, let's calculate the amount Mary borrowed. She bought the car for $14,000 and paid $1,000 down. Therefore, the amount she borrowed is $14,000 - $1,000 = $13,000.
Next, we need to calculate the interest Mary will need to pay on the borrowed amount. The interest rate is 15%, but it's important to note that it is an annual interest rate.
To calculate the interest, we multiply the borrowed amount ($13,000) by the interest rate (15%) and divide it by 100.
Interest = ($13,000 * 15) / 100 = $1,950
So, after one year, Mary will owe the initial borrowed amount ($13,000) plus the interest ($1,950), which comes to a total of $13,000 + $1,950 = $14,950.
Therefore, Mary will owe a total of $14,950 at the end of one year.