Question

Naomi gets a $26,000 loan in order to purchase a new car. Her loan has an interest of 3.5% and she has decided she will pay off the car in 5 years with monthly payments of $473. If Naomi makes her monthly payments for the next 5 years, what is the total amount that she will spend to pay off the car?

Answer 1

She will pay a total of $28380 for the car in 5 years if she pay $473 monthly

Explanation:

Monthly payment = $473

Total duration= 5 years

Total payment = 473 x 12 x 5

= 473 x 60

=$ 28380

She will pay a total of $28380 for the car if she pay $473 monthly.