Dominic pays 5% interest on his $17000 college loan and 9% interest on his $15000 car loan. What average interest rate does he pay on the total $32000 he owes? Round your answer to the nearest tenth of a percent.
Use the same method I showed you when you were your other self.
Same question, just different numbers.
https://www.jiskha.com/questions/1774531/Dominic-pays-9-interest-on-his-22000-college-loan-and-11-interest-on-his-16000
To find the average interest rate Dominic pays on his total debt, you need to consider the individual interest rates and the amounts of each loan.
Step 1: Calculate the total interest paid for each loan.
For the college loan of $17,000 at an interest rate of 5%, the interest paid can be found using the formula:
Interest = Principal * Rate
Interest = $17,000 * 0.05 = $850
For the car loan of $15,000 at an interest rate of 9%, the interest paid can be calculated as:
Interest = Principal * Rate
Interest = $15,000 * 0.09 = $1,350
Step 2: Find the total interest paid on both loans.
Total interest paid = Interest on college loan + Interest on car loan
Total interest paid = $850 + $1,350 = $2,200
Step 3: Calculate the average interest rate.
Average interest rate = Total interest paid / Total amount owed
Average interest rate = $2,200 / $32,000
Now, divide to get the decimal value of the average interest rate:
Average interest rate = 0.06875
Step 4: Convert the decimal to a percentage.
Average interest rate = 0.06875 * 100
Average interest rate = 6.875
Rounded to the nearest tenth percent, the average interest rate Dominic pays on his total debt is approximately 6.9%.