Question

You take out a​ $24,000 loan to purchase a car. The APR is​ 6%, compounded monthly. You have 5 years to repay the loan. How much total interest will you have paid at the end of the​ loan? Give answer rounded to the nearest whole number.

Answer 1

i have work to show you what i've tried

Answer 2

I have a formula you can use?

Answer 3

Or do you have that already? I think it would be best if you showed me what you've done

Answer 4

I think your problem was that you used the formula for simple interest

Answer 5

This is compound, so you would use the formula A=P(1+r/n)^t

Answer 6

Unless you used that and I'm blind as a bat

Answer 7

So if I fill that in, you get A=24000(1+.06/12)^5

Answer 8

okay that's what i orginally used. after i use the compound formula do i insert that to the simple interest?

Answer 9

Don't use simple interest at all. If they want to know the total interest instead of the total amount, just subtract 24000 from A, and round to the nearest hundredth if necessary

Answer 10

one more question so when would i use the simple interest formula?

Answer 11

If the question doesn't say that the interest compounds, then is when you should use the simple interest formula. In this situation, it says that it compounds monthly, so you would use compound interest.

Answer 12

oh wait I didn't use the simple interest formula

Answer 13

i used the amorization payment formula

Answer 14

@IrishBoy123

Answer 15

can you help please @TheGrimReaper666

Answer 16

Hey what's up

Answer 17

i did what you told me and i got the answer wrong

Answer 18

What did you get?

Answer 19

8372

Answer 20

I can walk you through the formula then, because that is not what I got.

Answer 21

okay, yes that would be great

Answer 22

So, first, you need to do .06/12

Answer 23

And you get...?

Answer 24

0.05

Answer 25

.005

Answer 26

Next, add one

Answer 27

1.005

Answer 28

After that, you need to do one to the power of five

Answer 29

*1.005

Answer 30

wait wouldn't be to the pwoer of 60?

Answer 31

cause the formula is n*t

Answer 32

12*5

Answer 33

Oh, right.

Answer 34

Forgive my brain running off for a bit

Answer 35

it's okay lol

Answer 36

And your answer to that is..?

Answer 37

1.3488501525493160693460091724394

Answer 38

Then multiply it by 24000 and subtract

Answer 39

and i get my same answer and it says its wrong

Answer 40

Well then, try 606.03

Answer 41

thats not right either

Answer 42

Wait, did you include the cents

Answer 43

my professor wanted it to the nearest whole number

Answer 44

The last things I would tell you to try, is to try to the power of twelve and also just 32372 and see if the question was worded wrong.

Answer 45

If none of those work, I don't know what to tell you, and I'm sorry I couldn't help.