Question

Rita just bought a car for 15,000. She paid 20% down and borrowed the remainder at an annual interest rate of 9.0%. The loan will be repaid over four years with monthly payments of $298.62. How much is rita's down payment and how much did she borrow?

Answer 1

Rita's down payment is $3000 and she borrowed $12000.

Explanation:

The cost of the car is $15000.

Given that she paid 20% down and borrowed the remainder.

So, Rita's down payment= 20% of $15000

`=(20)/(100)* 15000`

= $3000

As she borrowed the remainder cost, so,

the borrowed amount = 15000-3000

= $12000

Hence, Rita's down payment is $3000 and she borrowed $12000.