Question

Craig just purchased a new car. He financed $45,000 and must pay it back over 5 years with 11% interest. How much will Craig have paid in interest by the time his car is paid off?

Answer 1

$24750

Explanation:

Given data

Principal= $45000

Time=5 years

Rate= 11%

Let us apply the simple interest expression

SI= PRT/100

substitute

SI= 45000*11*5/100

SI= 2475000/100

SI= $24750

Hence, Craig would have paid $24750