Question

A car is advertised with a price of $14420. The payment plan to own a car is $493 per month for 7 years. What is the amount of interest paid? Round to the nearest cent. Do not put the $ in your answer or any units. Only type the number value.

Answer 1

The amount of interest paid is $20032.

Step-by-step explanation:

To calculate the amount of interest paid for the car, we can use the formula:

Interest Paid = Total Payments - Principal Amount

In this case, the principal amount is $14420 and the total payments over 7 years is $493 per month * 12 months * 7 years = $34452.

Therefore, the interest paid is $34452 - $14420 = $20032.