We can calculate how much Eric borrowed to buy the car by using the formula for simple interest:

$I = P \times r \times t$

Where:

• $I$ is the interest paid ($6,718.02),
• $P$ is the principal (the amount borrowed),
• $r$ is the annual interest rate (8.3% or 0.083),
• $t$ is the time in years (5 years).

Rearranging the formula to solve for $P$:

$P = \frac{I}{r \times t}$

Now, substituting the given values:

$P = \frac{6,718.02}{0.083 \times 5}$

Let’s calculate it:

$P = \frac{6,718.02}{0.415}$

$P \approx 16,190.64$

So, Eric borrowed approximately $16,190.64 to buy the car.

Would you like more details or have any further questions?

Here are 5 related questions:

1. What is the formula for compound interest?
2. How does the interest rate affect the total interest paid over time?
3. What would the interest be if Eric had a 7-year loan instead of 5 years?
4. How would the principal change if the interest rate was reduced to 6%?
5. Can monthly payments be calculated using the same formula for interest?

Tip: Always check whether the interest is simple or compounded when calculating loans or investments.