Question

find the interest on a used car loan of 5000 at a rate of 16% for a period of 8 months ​

Answer 1

Given: A loan of $5000 is taken at a rate of 16% for a period of 8 months.

To find: The interest on the loan

Solution: The sum of money on which interest is calculated is called the principal. Let the principal be denoted by p, rate by r and time be t.

p= $5000

r=16%

Since time is given in months, we change it into a time period in years for calculation.

A year has 12 months.

Therefore, 8 months into years

= 8/12 years

= 2/3 years

t= 2/3 years

The formula for interest is:

$\frac{p \times r \times t}{100}$

$= \frac{5000 \times 16 \times 2}{3 \times 100}$

$= \frac{1600}{3}$

= 533.33

The interest on a used car loan of $5000 at a rate of 16% for a period of 8 months is $533.33 .

Answer 2

Interest of a loan of 5000 at a rate of 16% for a period of 8 months ​ is  about 533.33

Given :

• Loan Amount = 5000
• Rate of Interest = 16 %
• Time = 8 months

To Find:

• Interest Amount

Solution:

Formula for simple interest is:

SI = P * R * T/100

Where P = 5000

R = 16

T = 8/12 Years = 2/3

Step 1:

Substitute the values in the Formula

SI = 5000 x 16  x (2/3) /100

Step 2:

Calculate the value

SI = 50 x 16  x (2/3)  

SI = 1600/3

SI ≈ 533.33

Interest amount is approximate 533.33