Question

Mari has just made her last payment on her car. The lifetime of the loan was 36 months. The bank financed her for $15,000 at 6.71%. How much did Mari actually pay, after she made her last payment, for the car?

a.
$15,000
c.
$17,001.20
b.
$16,602.12
d.
$18,205.30

Answer 1

Mari paid $16,602.12. (B)

Because 6.71% of interest would be 1,602.
Calculating this is kinda hard. I suggest using a loan site. They helped me tons!

Answer 2

The correct option is b. The total amount paid by Mari is 16602.12.

Explanation:

The principal amount is $15000, rate of interest is 6.71% and the number of months is 36.

The formula for monthly installment is

`A=P* ((r)/(12))/(1-(1+(r)/(12))^(-12t))`

Where, P is principal amount, r is rat of interest, t is number of years.

Mari monthly installment is

`A=(15000\left((0.0671)/(12)\right))/(1-\left(1+(0.0671)/(12)\right)^(-36))`

`A=461.17`

Her monthly installment is $461.17. Since the lifetime of the loan was 36 months, therefore the total amount paid by Mari is

`461.17* 36=16602.12`

Therefore the correct option is b. The total amount paid by Mari is 16602.12.