Question

Alicia borrowed $15,000 to buy a car. She borrowed the money at 8% for 6 years. What is the interest rate she will pay for the loan?

I am terrible at this and I'm not just looking for answer hand outs. I really want to know step by step how to get the answer. I like to actually learn.

Answer 1

First convert the rate into a decimal.
8/100=0.08
Next put all those numbers 15,000, 0.08, and 6 into the equation A=P(1+(rt)).
This is how you do it.
A=15,000(1+(0.08*6))
A=15,000(1+0.48)
A=15,000(1.48)
A=22,200