Question

Larry pays 8% interest on his $26,000 college loan and 11% interest on his $19,000 car loan. What average interest rate
does he pay on the total $45,000 he owes? Round your answer to the nearest tenth of a percent.
Provide your answer below:

Answer 1

The  average interest rate on Larry's total loan is 9.27%

The amount of interest paid is $4,171.50

What is the weighted average interest?

The average interest of Larry on the two loans is the weighted average interest rate of the two loans, which is determined as the sum of interest rates multiplied by portion of the total loan value of $45,000

Weighted average interest rate=(8%*$26000/$45000)+(11%*$19000/$45000)

Weighted average interest rate=9.27%

The interest paid on the total loan of $45,000 is 9.27% of the total loan

interest paid=$45,000*9.27%

interest paid=$4,171.50

Find out more about weighted average on:https://brainly.com/question/26595359

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