If you buy a car on credit the car costs R130 000 then u deposit it for R130 00 and pays monthly instalments of R4600 for two years How much interest was charged
The total amount paid over the two years is given by:
Deposit: R30 000
Monthly payments: R4600 x 24 = R110 400
Total amount paid = R30 000 + R110 400 = R140 400
The total interest charged is the total amount paid (R140 400) minus the original cost of the car (R130 000):
Interest charged = R140 400 - R130 000 = R10 400
Therefore, R10 400 of interest was charged on the car purchase.