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Jordan needs to purchase a car. The car Jordan plans to purchase costs $15,000. Jordan has saved $3,000 to
use as a down payment for the car. Jordan is offered credit terms of 5% APR for 5 years
In one year, how much interest will Jordan pay on this loan?

Sagot :

anthougo

In one year, the interest that Jordan will pay on a loan to purchase a car that costs $15,000 with a downpayment of $3,000 at 5% APR for 5 years is $600.

How is interest calculated?

The interest can be computed using an online finance calculator for the 5 years period.

However, to calculate interest for one year, especially the first year, the loan amount is multiplied by the APR, as below.

Data and Calculations:

Cost of car = $15,000

Down payment = $3,000

Car loan = $12,000 ($15,000 - $3,000)

APR = 5%

Loan period = 5 years

Interest for one year (first year) = $600 ($12,000 x 5%)

Thus, the interest for the first year is $600.

Learn more about computing interest on the loan at https://brainly.com/question/24576997

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