Question

Colin is buying a used car. Colin borrows $5000 for 4 years at 12% annual interest. How much interest will Colin pay?

A. $2000
B. $2200
C. $3000
D,$3200
E.None of the choices are correct

Answer 1

simple interest or compound interest ?

Answer 2

I don't know

Answer 3

If it is simple interest, then put the formula
I =P*T*R/100
I= total interest
P= principle amount ($ 5000)
T= Time period (4)
R= rate of interest (12)

Answer 4

how do you solve it can you explain me please

Answer 5

R= 12%
means u have to pay extra 12% of the total money for every year u keep it with u.
So find out what is 12% of the total money and u have to pay that extra amount of the money at the end of each year.

Answer 6

12%/100=5000/4 ???

Answer 7

12% of 5000 is (12*5000)/100=600

Answer 8

so the answer is E right

Answer 9

this 600 is the interest of the 1st year.
if u r keeping money for 4 years, then u have to give 4 times of 600 as interest.

Answer 10

2400

Answer 11

Yes, u got it.

Answer 12

so what i have to do

Answer 13

What u have to do? with what?

Answer 14

so the answer is E

Answer 15

yes it is E.

Answer 16

thank you

Answer 17

welcome..