Answer: To calculate the total amount of interest to be paid, we need to first find the amount of the loan and then multiply it by the interest rate.
The amount of the loan is the cost of the car minus the deposit:
$24,000 - $7,000 = $17,000
The interest rate is 12% per annum, so over two years, the rate is 12% / 2 = 6% per annum.
The total amount of interest to be paid is the loan amount multiplied by the interest rate:
$17,000 * 6% = $1,020
Therefore, the total amount of interest to be paid is $1,020.
Explanation: