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40 votes
40 votes
Frederick needs to borrow $3000 for a down payment on a new car. His uncle decided to loan him the money as a 2.6% loan. Frederick doesn't want to pay more than $312 in interest. How many years does Frederick have to pay back the loan?

User Kerokero
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1 Answer

13 votes
13 votes

Step 1

Find the interest on the loan to his uncle every year.


3000*0.026\text{ = \$78 interest per year}

Step 2

Find the number of years it will take him to payback


=(312)/(78)=\text{ 4 years}

Therefore, it will

User Lars P
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