Question

If a $20,000 car loan earns $2240 in simple interest over 4 years, how much interest will a $24,000 car loan earn over 7 years?

Answer 1

Use I = Prn

in your question I = 2240 P = 20000 and n = 4 find r

2240 = 20000 x 4 x r

2240/80000 = r

0.028 = r as a percentage its 2.8%

now the next part

I = 24000 x 0.028 x 4

I'll leave you to do the calculation

Answer 2

Campbell, you're close, but the final line is wrong.

Answer 3

oops its 7 years

I = 24000 x 0.028 x 7

Answer 4

Simple interest equals principle * interest * time
So use that to find the interest amount of the first and apply that to the second.

Principle = 20,000
Interest = x
time = 4 years
2240=20000x∗4


Then for the second equation it's the same concept:
Principle = 24,000
Interest = Value of x from above
Time = 7 years