Maths

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 :)

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  1. 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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