Question

Hannah is taking out a 8.1% loan to purchase an $15,000 car. The length of the loan is 8 years. How much will she pay in interest?

Answer 1

We know simple Interest (SI) = prt/100 where p = principal amount i.e $18,000, r = rate of interest i.e. 4.3% and t = time i.e. 8 years.
So, SI =
18
,
000
×
4.3
×
8
100
⇒
6192