To calculate the total interest charged on the loan, we need to first determine the total amount paid in monthly installments over the three-year period.
Monthly installment = R4600
Number of months in three years = 36 months
Total amount paid in installments = R4600 x 36 = R165,600
The total amount paid in installments is R165,600. Since the total cost of the car was R130,000, the total interest charged is:
Total interest = Total amount paid in installments - Cost of the car
Total interest = R165,600 - R130,000
Total interest = R35,600
Therefore, R35,600 interest was charged on the loan.
If you buy a car on credit the car costs R130 000 then u deposit it for R130 00 and pays monthly instalments of R4600 for three years How much interest was charged
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