Subjects finance

Car Loan Interest 27D74A

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1. **State the problem:** Kenneth borrowed 7808 to buy a car. The interest rate is 9.13% per annum. We need to find the interest for 45 days. 2. **Formula used:** The simple interest formula is $$I = P \times r \times t$$ where: - $I$ is the interest - $P$ is the principal amount - $r$ is the annual interest rate (in decimal) - $t$ is the time in years 3. **Convert the interest rate to decimal:** $$r = \frac{9.13}{100} = 0.0913$$ 4. **Convert time from days to years:** $$t = \frac{45}{365}$$ 5. **Calculate the interest:** $$I = 7808 \times 0.0913 \times \frac{45}{365}$$ 6. **Intermediate calculation:** $$I = 7808 \times 0.0913 \times 0.1232876712$$ 7. **Multiply step-by-step:** $$7808 \times 0.0913 = 712.1504$$ 8. **Final interest:** $$I = 712.1504 \times 0.1232876712 = 87.819091$$ **Answer:** Kenneth would have to pay approximately **87.819091** interest in 45 days.