Final answer:
The price of the car, you need to know the interest rate and the number of years for the loan. Without that information, we cannot calculate the exact price. However, Example B explains how to calculate the price once you have the interest rate and loan term, using a loan calculator.
Step-by-step explanation:
The price of the car, we first need to know the interest rate and the number of years for the loan. The question mentions borrowing money at an unknown interest rate, so we cannot calculate the exact price without that information.
However, we can use the information from Example B to show you how to calculate the price once you have the interest rate and loan term. For example, if you have a $20,000 car loan with a 6% annual interest rate and you pay it off in monthly installments of $500, you can use a loan calculator to find the loan term. In this case, it would take approximately 40 months to pay off the loan. You can use the same method with different payment amounts to find the loan term for other monthly installments, such as $100.
Therefore, without the interest rate and loan term, we cannot determine the price of the car. Once you have that information, you can use a loan calculator to calculate the price.