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 3 months 2021-08-09T11:45:12+00:00 1 Answers 15 views 0 ## Answers ( ) 1. 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%