Answer:
a) interest paid: $1104
b) monthly payment: $374.55
c) total cost: $26,244
d) simple interest: $2136.90
Step-by-step explanation:
The loan amount is $24,140 · (1 -15%) = $21,369
The amortization formula tells you the monthly payment.
A = P(r/n)/(1 -(1 +r/n)^(-nt)) . . . . loan amount P at annual rate r compounded n times per year for t years
A = $21,369(0.02/12)/(1 -(1 +0.02/12)^(-12·5)) ≈ $374.55
The total amount paid will be 60 times this, so ...
total of payments = 60·$374.55 = $22,473
The interest paid is the difference between this and the loan amount:
interest paid = $22,473 -21,369 = $1104
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The monthly payments will be $374.55, as found above.
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The total cost of the car will be the original price plus the interest paid:
$25,140 +1,104 = $26,244
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The simple interest on $20,519 for 5 years is ...
I = Prt = $21,369 · 0.02 · 5 = $2136.90 . . . simple interest
