Question

A) A contractor is buying a truck for work. They have saved $2,000.00 for the down payment. The remaining $4,000.00 will be financed through the dealership for three years at an interest rate of 2%. How much interest would they pay by the end of the finance?​

Answer 1

$240

Explanation:

To calculate the interest, you need to multiply the principal (the amount financed, $4,000.00) by the interest rate (2%) and the number of years (3).

So, the interest would be: $4,000.00 x 0.02 x 3 = $240.00

The contractor would pay $240.00 in interest over the course of the 3-year financing.