Question

jamal is going to borrow $14,000 from his credit union to buy a used car. The APR is 7.0% and the length of the loan is 4 years. How much will Jamal pay in interest ?

Answer 1

his total amount of interest will be $2,091.88

Answer 2

Answer: Jamal will pay $4351.14 in interest.

Explanation:

Since we have given that

Amount Jamal is going to borrow = $14000

Length of the loan = 4 years

Rate of interest on loan = 7%

Interest Jamal needs to pay is given as

`Amount=P(1+(r)/(100))^n\\\\Amount=14000(1+(7)/(100))^4\\\\Amount=14000(1+0.07)^4\\\\Amount=14000(1.07)^4\\\\Amount=\$18351.14`

As we know the formula for "Interest":

`Amount-Principal=Interest\\\\18351.14-14000=\$4351.14`

Hence, Jamal will pay $4351.14 in interest.