# Maths

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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?

• Maths -

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, trade-in, 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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