Question

A purchase price of a car is $20,000.

A deposit of $5,000 is paid.
The balance will be repaid with 60 monthly payments of $400.

The total amount of interest charged is:

A) $1,000
B) $4,000
C) $9,000
D) $19,000
E) $24,000

Answer 1

To find out the interest paid,we would have to deduct the original amount from the price paid.

the equation would be:
payment-purchase price

The amount required to be paid:
5000+60×400
=$5000+24000
=$29000

Thus,the amount of interest would be
29000-20000
=$9000

Therefore,the answer is C) $9000

hope it helps!