Question

1. You want to purchase a car that costs $25,000. You must pay a 10% down payment. How much is this?Answer: 2,5002. What do you still owe? Answer: 22,5003. Determine the monthly payment for 60 months with an APR of 5.5%. Round to the nearest cent.Answer: 22,500(0.055/12)/(1-(1+0.055/12)^(-60)= 429.78 rounded to the nearest cent.4. How much do you pay all together at the end of the 60 months including the down payment and interest charges? 5. Determine the total interest you paid at the end of the 60 months.I need help with number 4 and 5. Please explain your answers.

Answer 1

Question 4:

4. How much do you pay all together at the end of the 60 months including the down payment and interest charges?

The monthly payment according to question 3 is: 429.78.

And this payment will be done for 60 months, so for those 60 months you will pay:

`60*429.78.=25,786.8`

Plus, if we include the down payment, which according to question 1 is 2,500, the total pay is

`25,786.8+2,500=28,286.8`

Answer: 28,286.