Question

хTo pay for a $23,100 motorcycle, Jenny made a down payment of $4200 and took out a loan for the rest on the loan, she paid monthly payments of $339.62 for 5 years.(a) What was the total amount Jenny ended up paying for the motorcycle5(including the down payment and monthly payments)??si() How much interest did Jenny pay on the loan?si

Answer 1

Given:

Motorcycle price - $23,100

Downpayment - $4,200

Monthly payments - $339.62

No. of years = 5 years

Find: Total amount paid and interest added

Solution:

a. total amount paid (monthly payments + downpayment)

In 5 years, there are 12 x 5 = 60 months. To be able to calculate the total paid monthly payments through out the 5 years, let's multiply 60 months to the monthly payment of $339.62.

`60*339.62=20,377.20`

The total paid monthly payments is $20, 377.20. Since Jenny paid a dwonpayment of $4, 200;

`4,200+20,377.20=24,577.20`

Jenny ended up paying a total amount of $24, 577.20 for the motorcycle.

b. interest added on the loan

Since Jenny had made a downpayment of $4200, the remaining balance on the motorcycle is:

`23,100-4,200=18,900`

Thus, she only loan $18,900.

Out from this $18,900, she made a total monthly payment of $20, 377.20. Hence, the interest added is:

`20,377.20-18,900=1,477.20`

The interest added on the loan is $1,477.20.