If you buy a car on credit the car costs R130 000 then u deposit it for R45500 and pays monthly instalments of R3950 for two years How much interest was charged
To calculate the total interest charged on the car loan, we first need to calculate the total amount paid over the two years.
The total cost of the car was R130,000 and the deposit was R45,500, so the total amount financed was R84,500 (R130,000 - R45,500).
The monthly instalment was R3,950, so the total amount paid over two years would be:
R3,950 * 12 months/year * 2 years = R94,800
Therefore, the total interest charged on the loan would be:
Total amount paid - Total amount financed
= R94,800 - R84,500
= R10,300
So, a total of R10,300 in interest was charged on the car loan.