samantha borrows $129000 to buy a used car. the bank charges 7.2%p.a. flate rate of interests over 30 months. what is the total amount she repays

Question

really need help. really confused

Answer 1

 

Simple interest Formula:

 

     I = Prt

 

          Where I = interest

                    P = principal ... 129,000

                    r = rate ... 7.2% = .072 as a decimal

                    t = time, in years ... 30 months = 2.5 years

 

      I = Prt

        = 129,000(.072)(2.5)

        = 23,220

 

This is the amount of interest charged.

 

The total amount repayed is the principal plus the interest.

 

    129,000 + 23,220 =$152,220