Question

Section 1.5: Mortgages and Credit Cards8. A car costs $10,500, and you're offered a loan that requires $800 down and a monthly payment of $187.53 for 60 months, how much will you pay in interest? Round your answer to the nearest dollar.$

Answer 1

A monthly payment of $187.53 for 60 months will give us:

$187.53\times60=\text{ \ 11,251.8}$

The total money paid is:

$\begin{gathered} \text{the down payment of \ 800 + \ 11,251}.8 \\ \Rightarrow800+11,251.8=12051.8 \end{gathered}$

Hence, the interest paid is:

$\begin{gathered} 12,051.8-10,500 \\ \Rightarrow\text{ \ }1551.8 \end{gathered}$