Question

Jimmy owes $29,500 for a car loan to be repaid in 36 months. If the interest rate is 7.375%, then how much interest will he pay?

How to solve this problem step-by-step.

Answer 1

Interest=Principle×rate×time or I=P×r×t
Principle=29500
Rate= 7.375%= 0.07375
Time= 36 months= 3 years
I=29500×0.07375×3
I=2175.625×3
I=6526.875≈6526.88
Solution: He will pay about $6526.88 in interest.