Shakira buys a second-hand car for $5000. She pays a $2000 cash deposit and borrows the balance from her parents. She agrees to pay her parents $100 each month for 3 years. a. Calculate the total amount Shakira pays to her parents. b. How much interest does she pay? c.Find the annual flat rate of interest charged by Shakira’s parents.
a. Repayments = 100 × 36
b. Total paid for the car = 2000 + 3600
Interest = $5600 – $5000 = $600