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America paid 3% interest on a $3900 car loan for 5 years. How much interest did she pay on her car loan?

User Harini Sekar
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1 Answer

16 votes
16 votes

Answer:

If America paid 3% interest for a year

At simple interset ,

FV = Pv(1 + it)

FV = Future value

Pv = present value

i = interest rate

t= time

FV = Pv(1 + it)

= $3900( 1+ 0.03 x 5)

= $4485

FV = PV + interest

FV - PV = interest

$4485 - $3900 = interest

interest = $585

Explanation:

User Bram Luyten
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