87.3k views
0 votes
To pay for a $17,400 camper, Lisa made a down payment of $3500 and took out a loan for the rest. On the loan, she paid monthly payments of $307.68 for 4 years.

(a) What was the total amount Lisa ended up paying for the camper (including the down payment and monthly payments)?
(b) How much interest did Lisa pay on the loan?

User Ogaga Uzoh
by
9.0k points

1 Answer

1 vote

Final answer:

Lisa paid a total of $18,268.64 for the camper, including her down payment and monthly payments. She paid $868.64 in interest on the loan, which was the difference between the amount borrowed and the total amount she paid back.

Step-by-step explanation:

To calculate the total amount Lisa paid for the camper, we need to add the down payment and all the monthly payments she made.

Total Paid for Camper

Lisa's down payment: $3500

Monthly payments: $307.68 for 4 years (4 years * 12 months/year = 48 months)

Total from monthly payments: 307.68 * 48 = $14,768.64

Total paid (down payment + monthly payments): $3500 + $14,768.64 = $18,268.64

Interest Paid on Loan

Amount borrowed (price of camper - down payment): $17,400 - $3500 = $13,900

Total amount paid for the loan (monthly payments total): $14,768.64

Interest paid: Total paid for loan - Amount borrowed = $14,768.64 - $13,900 = $868.64

Lisa paid a total of $18,268.64 for the camper and $868.64 in interest over the course of the loan.

User Elias Limneos
by
8.6k points