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29 August, 20:15

Sam borrowed 15,575$ to purchase a car. Bank is charging him 21% for a 5 year loan. At the end of the 5 years, how much will sam have paid for the car and interest?

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  1. 29 August, 23:15
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    Step-by-step explanation:

    We would apply the formula for determining simple interest which is

    expressed as

    I = PRT/100

    Where

    P represents the principal

    R represents interest rate

    T represents time in years

    I = interest after t years

    From the information given

    T = 5 years

    P = $15,575

    R = 21%

    Therefore

    I = (15575 * 21 * 5) / 100

    I = 16353.75

    Interest paid is $16353.75

    Total amount that Sam would have paid for the car would be

    16353.75 + 15575. = $31928.75
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