Y=3+2
Choose all that apply
- 10.0)
(15,2)
(0.5)
(
53)

A ) Hence The interest for the car loan is $ 4,310

B ) Hence The interest for the car loan is $ 3,152

Step-by-step explanation:

Given as :

The loan for the car = $ 20,000

The rate of interest of car loan = 5 % compounded annually

A ) The period of loan = 48 months = 4 years

Let the interest of the loan = CI

From compounded method

Amount = Principal ×

Or, Amount = $ 20,000 ×

Or,  Amount = $ 20,000 ×

Or, Amount = $ 20,000 × 1.2155

∴ Amount = $ 24310

So, Interest = Amount - Principal

Or, CI = $ 24,310 - $ 20,000  

∴  CI = $ 4,310

Hence The interest for the car loan is $ 4,310

B ) The loan for the car = $ 20,000

The rate of interest of car loan = 5 % compounded annually

The period of loan = 3 years

Let the interest of the loan = CI

So,

From compounded method

Amount = Principal ×

Or, Amount = $ 20,000 ×

Or,  Amount = $ 20,000 ×

Or, Amount = $ 20,000 × 1.1576

∴ Amount = $ 23,152

So, Interest = Amount - Principal

Or, CI = $ 23,152 - $ 20,000  

∴  CI = $ 3,152

Hence The interest for the car loan is $ 3,152