George had to borrow $48,000 for a new car for 8 months. The interest rate was 14% per year. How much interest did he have to pay for borrowing the money for 8 months?
Well, looks like George bought a very expensive car!!.
First, you have to calculate the monthly payment, which comes to:
=$6,319.26 George's monthly payment !!!.
$6,319.26 x 8 =$50,554.08 total of principal + interest.
$50,554.08 - $48,000 =$2,554.08 total interest that George has to pay.
P.S. I took your interest rate of 14% as being compounded monthly.
