Question

Cynthia makes a $3,000 down payment on a car priced at $11,000. Determine the loan amount on which the interest will be calculated. 3,000

$11,000
$15,000
$8,00

Answer 1

$8,000. The down payment comes of the principle before the interest is calculated.

Hope that helps.

Answer 2

$8,000 would be loan amount.

Explanation:

Price of Cynthia's car = $11,000

Cynthia make a down payment = $3,000

Down payment is the initial payment made when you bought something on credit and rest amount is loan amount which you have to pay with interest.

To determine the loan amount on which the interest will be calculated, we subtract the down payment from the cost of the car.

11,000 - 3,000 = $8,000

$8,000 would be loan amount.