Respuesta :
Answer:
- Interest rate on 2years loan term is $435.6
- Interest rate on 5years loan term is $1,452
Explanation:
Using the formula for calculating amount
Amount = Principal + Interest
Simple Interest = Principal × Rate × Time/100
To finance a car for $4,840 at a 4.5% interest rate on a 2-year loan,
Principal = $4,840
Rate = 4.5%
Time = 2years
SI = 4840×4.5×2/100
SI = 43560/100
SI = $435.6
Interest rate on 2years loan term is $435.6
Amount after 2years loan term will give $4840+$435.6
= $5,275.6
Monthly cost = $5,275.76/24
Monthly cost of car = $219.82
b) To finance the same car of $4,840 at a 6% interest rate on a 5-year loan,
SI = 4840×6×5/100
SI = 145200/100
SI = $1,452
Interest rate on 5years loan term is $1,452
Total cost by loan term = $4840+$1452
= $6,292
Monthly cost of car = $6,292/5×12
Monthly cost of car = $104.87
Computing the amount using the formula:
Amount = Principal + Interest
Simple Interest = Principal × Rate × Time/100
To finance a car for $4,840 over two years at a 4.5 percent interest rate,
Principal = $4,840
Rate = 4.5%
Time = 2years
SI = 4840×4.5×2/100
SI = 43560/100
SI = $435.6
The interest rate on a 2years loan term is $435.6
b) To finance the same $4,840 automobile over a 5-year period at a 6% interest rate,
SI = 4840×6×5/100
SI = 145200/100
SI = $1,452
The interest rate on a 5years loan term is $1,452
What are the terms of a monthly loan?
The term of a loan refers to how long it will take to pay it off, such as 60 months for an auto loan or 30 years for a mortgage.
A long-term loan will cost you more in total interest, but your monthly payments will be lower because the principal balance is stretched out over more months.
For more information about loans, terms refer to the link:
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