Question

George borrowed $25,000 for a new car. If George pays simple interest at a rate of

4/12% for 4 years, how much interest will he pay?

Answer 1

$93,585.53

Explanation:

If he is paying interest continually, you would use the formula Pe^rt

25000e^.33(4)= 3,585.53

If he used any other type of interest (monthly=12, quarterly=6, semi-annually=2, or annually=1) then you would use the formula p(1+r/n)^nt

25000(1+.33/n)^n(4)

n= put the number for how much you pay interest

Answer 2

To answer your question use the code ICE on here to get your answer works every time for me hope this helps