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jamal is going to borrow $14,000 from his credit union to buy a used car. The APR is 7.0% and the length of the loan is 4 years. How much will Jamal pay in interest ?

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aspenlei
his total amount of interest will be $2,091.88

Answer: Jamal will pay $4351.14 in interest.

Step-by-step explanation:

Since we have given that

Amount Jamal is going to borrow = $14000

Length of the loan = 4 years

Rate of interest on loan = 7%

Interest Jamal needs to pay is given as

[tex]Amount=P(1+\frac{r}{100})^n\\\\Amount=14000(1+\frac{7}{100})^4\\\\Amount=14000(1+0.07)^4\\\\Amount=14000(1.07)^4\\\\Amount=\$18351.14[/tex]

As we know the formula for "Interest":

[tex]Amount-Principal=Interest\\\\18351.14-14000=\$4351.14[/tex]

Hence, Jamal will pay $4351.14 in interest.

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