Christy needs $25,000 to purchase a new car. she borrows this amount at an interest rate of 8% for 5 years. what is the amount of interest that will be paid?

Question

10-01-2018
Business

contestada

Christy needs $25,000 to purchase a new car. she borrows this amount at an interest rate of 8% for 5 years. what is the amount of interest that will be paid?

Respuesta :

Otras preguntas

people sleep better if they g to bed and wake up at the same time every day

What would the oxygen measurements be on either side of the apparatus if there were no fish in it and the two chambers were fully sealed off from one another?

Find the area of the rhombus

Find x of this shape.

Until the school year is over, is this a subordinate clause?

0.05 is 1/10 the value of what decimal/number?

3 is 12 percent of what number

what is 0.14444 in fraction form? Simplify!

which statement best describes the result of the election of 1824? -No candidate receives a majority in the election so the electoral college had to revote. -th

Which scandal involved president harding's cabinet members who leased government owned land containing oil reserves to a private company for profit?

jamuuj jamuuj · Answer 1 · 2018-01-17T18:05:10+01:00

Principle is the amount borrowed or invested in or from a bank or a financial institution. In this case the principle is $ 25,000, interest rate is 8% and the interest period is 5 years.
Thus amount to be paid after a period of 5 years will be 25,000 ( 1 +0.08)∧5
= 25,000 (1.08)∧5
=25,000 × 1.4693
=$36,733.20
To calculate the interest we subtract the principle sum from the Amount to be paid.
= $36733.20- $25000=11733.20
Therefore, interest =$ 11733.20