Chapter 3: Q. 132 (page 334)

In the following exercises, solve.
Margaret’s car loan statement said she would pay $$ 7, 683.20$ in interest for a $5$ -year loan at $9.8 %$ . How much did Margaret borrow to buy the car?

Short Answer

Expert verified

Margaret borrowed $$ 15, 680$ to buy the car.

Step by step solution

Step 1. Given information

Interest, $I = 7683.20$

Rate, $r = 9.8 %$

Time, $t = 5$

Step 2. Simple interest formula

Simple interest, $I = P r t$

Substitute the known values,

$7683.20 = P (0.098) (5) 7683.20 = 0.49 P$

Step 3. Find P

Solve the equation for P,

$P = \frac{7683.20}{0.49} = 15, 680$

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

In the following exercises, solve.
Margaret’s car loan statement said she would pay $$ 7, 683.20$ in interest for a $5$ -year loan at $9.8 %$ . How much did Margaret borrow to buy the car?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Simple interest formula

Step 3. Find P

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Discrete Mathematics

Theoretical and Mathematical Physics

Mechanics Maths

Statistics

Logic and Functions

Pure Maths

Study anywhere. Anytime. Across all devices.

In the following exercises, solve.Margaret’s car loan statement said she would pay $7,683.20in interest for a 5-year loan at 9.8%. How much did Margaret borrow to buy the car?

Short Answer

Step by step solution

Step 1. Given information

Step 2. Simple interest formula

Step 3. Find P

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Discrete Mathematics

Theoretical and Mathematical Physics

Mechanics Maths

Statistics

Logic and Functions

Pure Maths

Study anywhere. Anytime. Across all devices.

In the following exercises, solve.
Margaret’s car loan statement said she would pay $$ 7, 683.20$ in interest for a $5$ -year loan at $9.8 %$ . How much did Margaret borrow to buy the car?