Amanda bought a car for $8,500. Her loan was for five years at a 4.6% interest rate. How much will Amanda pay for her car total, including interest?
I = PRT
I = 8500 * 0.046 * 5
I = 1955
8500 + 1955 = ?
To calculate the total amount Amanda will pay for her car, including interest, we can use the formula for calculating the total cost of a loan. The formula is:
Total Cost = Principal + Interest
First, let's determine the principal amount, which is the initial amount Amanda borrowed to buy the car. In this case, it is $8,500.
Next, we need to calculate the interest amount. The interest on the loan is calculated annually, so we need to multiply the principal by the interest rate and the duration of the loan in years.
Let's calculate the interest first:
Interest = Principal * Interest Rate * Duration
Interest = $8,500 * 0.046 * 5
Interest = $1,955
Now, we can calculate the total cost by adding the principal and the interest together:
Total Cost = $8,500 + $1,955 = $10,455
Therefore, Amanda will pay a total of $10,455 for her car, including interest.