Question

To pay for a 15,300 car, Tony made a down payment of $3900 and took out a loan for the rest. On the loan , he paid monthly payment payment of $252.34 for 4 years.A:what was the total amount Tony end up paying for the car.(including the down payment and monthly payment.B: how much interest did Tony pay on the loan.

Answer 1

A)

Down Payment = 3900

Loan Amount - 15,300 - 3900 = $11,400

Total Paid on Loan = $252.34 (monthly) for 4 years (4 x 12 = 48 months).

So, he paid

`252.34*48=\$12,112.32`

So, total amount Tony paid for the car is "downpayment (3900) + loan amount with interest (12,112.32)".

So,

`3900+12,112.32=\$16,012.32`

Answer: $16,012.32

B)

The interest is the excess amount on the loan.

Loan amount = $11,400

Loan + Interest amount = $12,112.32

Thus, the interest amount is 12,112.32 - 11,400 = $712.32

Answer: $712.32