Question

1. Corey buys a Toyota Yaris for $15,000 at 4.1% interest rate for 6 years.

How much interest will Corey pay on his Yaris?

What is the total amount that will paid?

What is his monthly payment?

Answer 1

a) $4089.55

b) $19089.55

c) $56.80

Explanation:

a) (100 + 4.1)/100 = 1.041. So, 15000 × 1.041⁶ = 19089.55. Interest that will be paid: 19089.55 - 15000 = $4089.55 (2 dp).

b) $19089.55 (with interest and principal)

c) 4089.55/72 = $56.80