That's incorrect. This question was answered in a Standard Maths thread.
The amount paid= $325+96x12x3
= $3 781
The amount borrowed= $3 250 - 325
= $2 925
Interest paid = $3 781 - 2 925
= $ 856 over 3 years
Use I = PRN
856 = 2925 x R x 3
856 = 8775 x R
R = 856 / 8775
= 0.0975
= 9.75% pa
The amount paid= $325+96x12x3
= $3 781
The amount borrowed= $3 250 - 325
= $2 925
Interest paid = $3 781 - 2 925
= $ 856 over 3 years
Use I = PRN
856 = 2925 x R x 3
856 = 8775 x R
R = 856 / 8775...