Question

Craig just purchased a new car. He financed $45000 and must pay it back over 5 years with 11% interest. a) How much will craig have paid in interest by the time his car is paid off? b) How much will he have paid for his car, including interest, after 5 years?

Answer 1

49950

Explanation:

111% of 45000 is 49950

Answer 2

The amount Craig financed at the beginning(P) = 45000

Number of years he took to repay(T) = 5

Rate of interest(R) = 11%

Total interest he paid = PTR/100

= 45000(5) (11) / 100

= 450 × 55 = 24,750

Therefore Craig will have paid $24,750

Explanation: