Question

Your Aunt Cindy took out a 15 year loan to buy a new boat for her husband at an interest rate of 6.5%. She was

advised to add in other expenses so she also bought 2 ATV four-wheelers at $2400 each. What was the interest
amount paid on the part for the four-wheelers?

Answer 1

To calculate the interest amount paid on the part for the four-wheelers, we need to determine the total cost of the four-wheelers and then calculate the interest on that amount.

Given that Aunt Cindy bought 2 ATV four-wheelers at $2400 each, the total cost of the four-wheelers is:

2 * $2400 = $4800

Now, let's calculate the interest amount paid on the part for the four-wheelers.

To do this, we'll use the loan term of 15 years and the interest rate of 6.5%.

First, we calculate the interest rate as a decimal:

6.5% = 6.5/100 = 0.065

Next, we calculate the interest amount by multiplying the total cost of the four-wheelers by the interest rate:

$4800 * 0.065 = $312

Therefore, the interest amount paid on the part for the four-wheelers is $312.