You need to buy a car to you get to school and work. you take out a $8,000 loan with a 9.25% annual simple interest rate to be paid off over 66 months.

a) how much interest will you be charged?

b) what is the total amount to be paid?

A) Interest that will be charged  = $4070

B) The total amount to be paid   = $12070

Step-by-step explanation:

Given:

Initial amount paid  = $8,000

Rate of the interest = 9.25%

Time period = 66 months

A) AMOUNT OF INTEREST CHARGED

Let the interest charge be x

here we are given with number of months i.e., 66 months

converting 66 months into years

=>

=>5.5

so 66 months = 5.5 years

Now substituting the vales in the formula we get,

simple interest, x =

simple interest, x =

simple interest, x =

simple interest, x = 4070

B) TOTAL AMOUNT TO BE PAID:

Let the total amount paid after 66 months be Y

Then ,

Y = Principal amount + interest for 66 months

Y = 8000+ 4070

Y =12070

take it another