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Raymond bought a car for $40,000. He took a 20,000 loan from a bank at an interest rate of 15% per year for a 3-year period. What is the total amount of (interest and loan) that he would have to pay the bank at the end of 3 years

 Feb 11, 2020
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Is the 15% interest "simple interest" or "compound interest"? That will make a big difference !!

 

The way you have it stated in your question, it sounds like "simple interest". If that is indeed the case, then:

 

[0.15 x 20,000 x 3] + 20,000 = $29,000 - total principal + interest paid to the bank after 3 years.

 Feb 11, 2020

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