Question

assume that you take out a 4000 loan for 24 months at a 5.5 %Apr how much total interest would you pay at the end of the 24 months round your answer to the nearest cent

Answer 1

Given:

The principal amount is P = 4000.

The rate of interest is r = 5.5% = 0.055.

The number of years is n = 24 months = 2 years.

The objective is to find the total interest.

Explanation:

The general formula to find the total interest is,

$I=p\times n\times r\text{ . . . . . . (1)}$

Substitute the given values in equation (1).