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Suppose that you borrow ​$16000 for 5 years at 8% toward the purchase of a car. Find the monthly payments and the total interest for the loan.

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The total interest on the loan and monthly payments are $64,000 and $ 1,333.3 respectively

The formula for calculating the simple interest is expressed as:

I = PRT

  • P is the amount borrowed = $16,000
  • R is the rate  = 8% = 0.08
  • T is the time = 5 years

Get the interest;

I = 16,000 * 0.8 * 5

I = $64000

Amount after 5 years = 16000 + 64000

Amount after 5 years  = $80,000

Monthly payment  = 80000/60months

Monthly payment = $1,333.33

Hence the total interest on the loan and monthly payment are $64,000 and $ 1,333.3 respectively

Learn more on interest here: https://brainly.com/question/10488979

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