Question

Frederick needs to borrow $3000 for a down payment on a new car. His uncle decided to loan him the money as a 4.9% loan. Frederick doesn't want to pay more than $882 in interest. How many years does Frederick have to pay back the loan?

Answer 1

3000 x 0.049 = 147 interest each year.

882/ 147 = 6

He has 6 years to pay back the loan.