Question

Mr Jones goes to the bank and loans $23000 for his car. He needs to pay a simple interest of 7.3% for 8 years. After 5 years the interest decreases to a 6.2%. How much did Mr Jone pay in full?

Answer 1

The amount Mr. Jones had to pay initially in total over the 8 years is;

`A=P+(PRT)/(100)`

Inserting the values of P, R, and T, we have;

`\begin{gathered} A=23000+(23000*7.3*8)/(100) \\ \\ A=\text{ \$}36432 \end{gathered}`

Now, if this is spread over 8 years, In 5 years, Mr. Jones will pay;