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 three years How much interest was charged
To calculate the total interest charged on the loan, we need to first determine the total amount paid in monthly installments over the three-year period.
Monthly installment = R4600
Number of months in three years = 36 months
Total amount paid in installments = R4600 x 36 = R165,600
The total amount paid in installments is R165,600. Since the total cost of the car was R130,000, the total interest charged is:
Total interest = Total amount paid in installments - Cost of the car
Total interest = R165,600 - R130,000
Total interest = R35,600
Therefore, R35,600 interest was charged on the loan.