Question

Evelyn borrows $31,000.00 to buy a Honda Civic. She pays $560.00 a month for 5 years. How much total interest will she pay? Round to the nearest dollar.

Answer 1

Given:

Loan amount = $31000

Monthly payment = $560

time = 5 years.

The total amount she pays for 5 years is,

`\begin{gathered} 5\text{ years=5}*12=60\text{ months} \\ 1\text{ month = \$560} \\ 60\text{ month=560}*60=33600 \end{gathered}`

So, the interest amount is,

`33600-31000=2600`

Answer: She will pay $2600 interest.