thomas borrowed $4800 to buy a new car. he will be paying $96 each month for the next 60 months. find the simple interest rate for his car loan.
IR = ($96 * 60 - $4800) / 5 / $4800 * 100% = 4%
oh, i may be able to help. Im learning this right now ubt i'm in the 6th. give me a sec and i can try.
To find the simple interest rate for Thomas' car loan, we need to know the total interest he will pay over the course of the loan. We can then use this information to calculate the interest rate.
The total amount paid by Thomas over 60 months is the monthly payment ($96) multiplied by the number of months (60).
Total amount paid = $96/month * 60 months = $5760.
The interest paid is the total amount paid minus the amount borrowed.
Interest paid = Total amount paid - Amount borrowed
Interest paid = $5760 - $4800 = $960.
Now, to find the interest rate, we can divide the interest paid by the amount borrowed, and then convert it into a percentage.
Interest rate = (Interest paid / Amount borrowed) * 100%
Interest rate = ($960 / $4800) * 100%
Interest rate = 20%
Therefore, the simple interest rate for Thomas' car loan is 20%.