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Amirrah obtained a car loan for $15,000 at an interest rate of 5% for three years. Her monthly loan payment is $449.56. What is the total cost of the loan?

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1 Answer

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Answer:

$17,500

Explanation:

To calculate the total cost of Amirrah's car loan, we need to consider the principal amount, the interest rate, and the loan term.

The principal amount is $15,000, the interest rate is 5%, and the loan term is three years.

First, let's calculate the total interest paid over the loan term. We can use the formula:

Total Interest = Principal Amount * Interest Rate * Loan Term

Total Interest = $15,000 * 0.05 * 3

Total Interest = $2,250

Now, let's calculate the total cost of the loan, which includes both the principal amount and the total interest paid.

Total Cost of Loan = Principal Amount + Total Interest

Total Cost of Loan = $15,000 + $2,250

Total Cost of Loan = $17,250

Therefore, the total cost of Amirrah's car loan is $17,250.

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