Mr. Chavis needed to take out a loan for $74,400 for a 2016 XJ luxury Jaguar sedan. If he takes 5 years to pay off the loan at a rate of 5.5%, how much will he pay in interest at the end of the 5 years?

Question

Mathematics

Kaley Pearson

2 October, 23:29

Mr. Chavis needed to take out a loan for $74,400 for a 2016 XJ luxury Jaguar sedan. If he takes 5 years to pay off the loan at a rate of 5.5%, how much will he pay in interest at the end of the 5 years?

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Answers (1)

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Ismael Dean · Answer 1

Mr. Chavis will pay $20,460 in interest at the end of 5 years.

Simple interest will be computed by multiplying the principal to its interest rate and term.

I = P x r x t

P = 74,400

r = 5.5% or 0.055

t = 5 yrs

I = 74,400 x 0.055 x 5

i = 20,460