Question
Interest on a loan Find the interest rate your local bank charges for a car loan. (a) What is the interest rate?(b) Calculate the amount of interest you would pay on a loan of $\$ 8,000$ for 5 years.
Step 1
According to the explanation, the interest paid over the course of five years is $792. We know that the formula to calculate interest is: \[I = PRT\] where: \(I\) is the interest, \(P\) is the principal amount (the initial amount of money), \(R\) is the annual Show more…
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Key Concepts
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