Question

A motor car advertised for $6990 is sold under the following terms: 40% deposit and the balance repaid over 5 years at $32 per week.

A. What is the deposit required?

B. Find the amount paid as interest?

Answer 1

the deposit required is 40%....so thats 40% of 6990
0.40(6990) = $ 2796 <== the deposit

that leaves 6990 - 2796 = $ 4194

balance repaid over 5 years at $ 32 per week...
1 yr = 52 weeks....so 5 years = 5(52) = 260 weeks
at $ 32 per week.....260 * 32 = $ 8320

so if he is paying back $ 8320....and he owes $ 4194....then the interest paid is 8320 - 4194 = $ 4126 <== I am not 100% sure on this one...it just seems to make sense...but I am not the best at financial math problems