Answer to Question #142573 in Financial Math for Kornelia Wilk

Question

Koltons monthly payment for his $25,856 car is $615 for 4 years. What is the total interest he will be paying? round to the dollar.

Answer 1

$\bold {Answer}$

Total interest $= \$3,664$

$\bold {Solution}$

Total interest = Total payment - Cash price of car

Total payment $= \$615 × (12 \space months × 4 \space years)$

$= \$615 × 48 \space months$

$= \$29,520$

Total interest $= \$29,520-\$25,856$

$\bold {=\$3,664}$