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15 August, 11:38

Alicia borrowed $15,000 to buy a car. She borrowed the money at 8% for 6 years. What is the interest rate she will pay for the loan?

I am terrible at this and I'm not just looking for answer hand outs. I really want to know step by step how to get the answer. I like to actually learn.

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  1. 15 August, 13:31
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    First convert the rate into a decimal.

    8/100=0.08

    Next put all those numbers 15,000, 0.08, and 6 into the equation A=P (1 + (rt)).

    This is how you do it.

    A=15,000 (1 + (0.08*6))

    A=15,000 (1+0.48)

    A=15,000 (1.48)

    A=22,200
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