A man buys a car at 25 gh cedis.he pays 20% of the cost of his own resources and takes a loan for the remainder at 2.5% simple interest per annum.calculate the total amount the man pays for the car if he pays the loan 8 years later.

Question

A man buys a car at 25 gh cedis.he pays 20% of the cost of his own resources and takes a loan for the  remainder at 2.5% simple interest per annum.calculate the total amount the man pays for the car if he pays the loan 8 years later.

Reiny · Answer

amount taken out as loan = 25 - .2(25) = 20 or just take .8(25) = 20 amount owing after 8 years = 20(1.025)^8 = 24.368 gh cedis