Michelle is trying to buy a car that costs $35,550, and she has saved up $20,700. She borrowed the remaining amount that she needed from a finance company. She now owes a total of $19,365 to the finance company. How much is the simple interest that accrued on this loan based on the original amount borrowed?

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bayosanuade bayosanuade · Answer 1 · 2019-11-09T17:53:39+01:00

Answer: $ 4,515

Step-by-step explanation:

[tex]\\[/tex]The cost of the car she wanted to buy = $35,550

[tex]\\[/tex]Her savings = $20,700

[tex]\\[/tex]That means she needs( $35,550 - $20,700) more in order for her to buy the car.

[tex]\\[/tex]Amount borrowed from the finance company = $35,550 - $20,700

[tex]\\[/tex]= $ 14,850

[tex]\\[/tex]Since she now owes the financial company a total of $19,365, then the interest accrued by the loan she borrowed is given by:

[tex]\\[/tex]$19,365 - $ 14,850

[tex]\\[/tex]= $4,515