Question

Jean paid $18,489 for a new car. calculate the total cost of the car if she financed it at an interest rate of 3.5% for 4 years.

Answer 1

We can conclude that the total cost of the car that she financed will be $21,077.46

Answer 2

This is a simple interest problem. We are going to use the formula:

`I=Prt`
Where I is the interest she has to pay for her loan, P is the amount she financed, r is the interest rate (in decimal), and t is the number of years.

Replace the values to get:

`I= (18489)(0.035)(4)`

`I=2588.46`

Now that we have the interest she paid, we just need to add them to the value she paid to get the total cost she paid:

`18489+2588.46=21077.46`

We can conclude that the total cost of the car that she financed will be $21,077.46