30-10-2019
Mathematics

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A man borrowed $18,000 to buy a car. If he pays a four and a half percent interest rate, what will the car cost in 3 years? (length of loan)

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madsquith04 madsquith04

30-10-2019

Simple interest:
Final value = principle (starting balance) x interest x time in years
Fv = PiN

18,000 x 0.045 x 3 = $2430
2430 + 18000 = $20430

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