Question

Mari has just made her last payment on her car. The lifetime of the loan was 36 months. The bank financed her for $15,000 at 6.71%. How much did Mari actually pay, after she made her last payment, for the car?
a.
$15,000
c.
$17,001.20
b.
$16,602.12
d.
$18,205.30

Answer 1

Mari paid $16,602.12. (B)

Because 6.71% of interest would be 1,602. 
Calculating this is kinda hard. I suggest using a loan site. They helped me tons!

Answer 2

Answer:

The correct option is b. The total amount paid by Mari is 16602.12.

Step-by-step explanation:

The principal amount is $15000, rate of interest is 6.71% and the number of months is 36.

The formula for monthly installment is

$A=P\times \frac{\frac{r}{12}}{1-(1+\frac{r}{12})^{-12t}}$

Where, P is principal amount, r is rat of interest, t is number of years.

Mari monthly installment is

$A=\frac{15000\left(\frac{0.0671}{12}\right)}{1-\left(1+\frac{0.0671}{12}\right)^{-36}}$

$A=461.17$

Her monthly installment is $461.17. Since the lifetime of the loan was 36 months, therefore the total amount paid by Mari is

$461.17\times 36=16602.12$

Therefore the correct option is b. The total amount paid by Mari is 16602.12.