Post a New Question

Maths

posted by .

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?
Working out please :)

  • 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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Algebra

    Joanie takes a $6000 loan to pay for her car. The interest rate on the loan is 12%. She makes no payments for 4 years, but has to pay back all the money she owes at the end of 4 years. How much more money will she owe if the interest …
  2. MATH PLEASE HELP

    a) How much will the monthly payment on a five yr car loan that changes 8.1% interest (compounded monthly) if the amount borrowed is $12,000?
  3. Maths Investments

    Kate is thinking about investing $60 000 for 4 years. She deposits her money into an account which earns interest paid semiannually at a rate of 7% p.a. After 2½ years, the interest rate drops to 5.6% p.a. and stays constant for the …
  4. algebra

    mr.thomas wants to buy a boat. he must make 548 monthly payments to pay back the amount he borrowed, plus interest. his monthly payment is $161.85. what other information is necessary to determine the amount of money mr.thomas borrowed …
  5. algebra

    mr.thomas wants to buy a boat. he must make 548 monthly payments to pay back the amount he borrowed, plus interest. his monthly payment is $161.85. what other information is necessary to determine the amount of money mr.thomas borrowed …
  6. math

    mr.thomas wants to buy a boat. he must make 548 monthly payments to pay back the amount he borrowed, plus interest. his monthly payment is $161.85. what other information is necessary to determine the amount of money mr.thomas borrowed …
  7. Maths B

    Kate is thinking about investing $45000 for 5 years. She deposits her money into an account which earns interest paid quarterly at a rate of 3.99% p.a. After 1½ years, Kate withdraws her investment (including interest) and deposits …
  8. math

    May Ling borrowed $2500.00 for vehicle repairs from her parents. She agreed to pay back the loan plus 7.5% simple interest on the $2500 added on in equal monthly payments over the next 6 months. a) How much interest will May Ling have …
  9. math

    Diane Van Os decided to buy a new car since her credit union was offering such low interest rates. She borrowed $32,000 at 3.5% on December 26, 2012, and paid it off February 21, 2014. How much did she pay in interest?
  10. Maths

    Mrs Ricky borrowed $5,340 at a bank at 9.5% per annum simple interest for 5 years. (A) the sum of money paid in interest to the bank. (B) the total amount of money repaid to the bank. (C) the value of each monthly installment.

More Similar Questions

Post a New Question