Question

Nobu has just made the last payment on his car. The lifetime of the loan was 48 months. The bank financed him for $18,000 at 6.76%. How much did Nobu actually pay, after he has made the last payment, for his car?

Answer 1

He paid $23,570.90.

The formula for compound interest is:

`A=p(1+(r)/(n))^(nt)`,

where A is the total amount including interest, p is the amount borrowed, r is the interest rate written as a decimal number, n is the number of times per year the interest is compounded, and t is the number of years. Substituting our information we have:


`A=18000(1+(0.0676)/(12))^(12*4) \\ \\=23570.90`

Answer 2

the answer is c: 2,539.44