Dominic pays 7% interest on his $18,000 college loan and 12% interest on his $13,000 car loan. What average interest rate does he pay on the

Question

Dominic pays 7% interest on his $18,000 college loan and 12% interest on his $13,000 car loan. What average interest rate does he pay on the total $31,000 he owes? (Round your answer to the nearest tenth of a percent.)

in progress 0
Ngọc Khuê 3 months 2021-08-09T11:45:12+00:00 1 Answers 15 views 0

Answers ( )

    0
    2021-08-09T11:46:57+00:00

    Answer:

    9.1%

    Step-by-step explanation:

    Simple Interest = Principal × Rate × Time

    First, converting R percent to r a decimal

    r = R/100 = 7%/100 = 0.07 per year.

    Solving our equation:

    A = 18000(1 + (0.07 × 1)) = 19260

    A = $19,260.00

    I = A – P = $1,260.00

    A = 13000(1 + (0.12 × 1)) = 14560

    A = $14,560.00

    I = A – P = $1,560.00

    Total interest = $1,260.00 + $1,560.00

    $ 2820

    What average interest rate does he pay on the total $31,000 he owes? (Round your answer to the nearest tenth of a percent.)

    Simple Interest = Principal × Rate × Time

    Time = 1 years

    Simple Interest = Total Interest = $2820

    Principal = $31,000

    Interest rate = Simple Interest/Principal

    = $2820/$31,000

    = 0.0909677419

    0.0909677419 × 100

    9.096774194%

    Approximately to the nearest tenth of a percent = 9.1%

Leave an answer

Browse

Giải phương trình 1 ẩn: x + 2 - 2(x + 1) = -x . Hỏi x = ? ( )