Question

Daniel bought a car for $56,000 and later sold it at 90%of its original price. he spent $1310.00 out of the amount received and invested the rest at 6%per annum simply interest. calculate the interest earned in three years

Answer 1

First, let's calculate the amount earned after he sold the car:

$90\text{\% of 56000}=0.9\cdot56000=50400$

Then, let's subtract 1310 from this value:

$50400-1310=49090$

Finally, we can calculate the interest earned using the formula for simple interest:

(I is the interest, P is the principal, i is the interest rate and t is the time)

$\begin{gathered} I=P\cdot i\cdot t_{} \\ I=49090\cdot0.06\cdot3 \\ I=8836.2 \end{gathered}$

Therefore the interest is $8836.20.