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24 May, 09:37

Alan pays $25,000 for a truck from akins ford. they charge 8% interest. he has decided to finance it for 36 months. how much interest will alan pay?

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  1. 24 May, 12:43
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    Assuming the interest compounds once a year:

    36 months=3 years

    price in 3 years: 25000*1.08^3=$31492.8

    gained interest: 31492.8-25000=$6492,8
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