Question

Michelle is trying to buy a car that costs $35,550, and she has saved up $20,700. She borrowed the remaining amount that she needed from a finance company. She now owes a total of $19,365 to the finance company. How much is the simple interest that accrued on this loan based on the original amount borrowed?

Answer 1

Answer: $ 4,515

Explanation:

`\\`The cost of the car she wanted to buy = $35,550

`\\`Her savings = $20,700

`\\`That means she needs( $35,550 - $20,700) more in order for her to buy the car.

`\\`Amount borrowed from the finance company = $35,550 - $20,700

`\\`= $ 14,850

`\\`Since she now owes the financial company a total of $19,365, then the interest accrued by the loan she borrowed is given by:

`\\`$19,365 - $ 14,850

`\\`= $4,515