Question

Matt takes out a car loan for $7100. He makes regular monthly payments for four years. At the end of the four years, Matt paid a total of $7654. How much interest did Matt pay on this loan?

Answer 1

Matt paid $554 in interest on a car loan of $7100 over four years, which is the difference between the total amount paid and the original loan amount.

Step-by-step explanation:

Matt took out a car loan for $7100 and after four years, he paid a total of $7654. To calculate the total interest paid on the loan, we subtract the original loan amount from the total amount paid over the four years:

1. Total amount paid: $7654
2. Original loan amount: $7100
3. Total interest paid: $7654 - $7100 = $554

Therefore, Matt paid $554 in interest over the lifespan of his four-year car loan.