to pay for a $19,800 car, jane made a down - payment of $3800 and took out a loan for the rest. on the loan…

to pay for a $19,800 car, jane made a down - payment of $3800 and took out a loan for the rest. on the loan, she paid monthly payments of $354.16 for 4 years. (a) what was the total amount jane ended up paying for the car (including the down payment and monthly payments)? (b) how much interest did jane pay on the loan?

to pay for a $19,800 car, jane made a down - payment of $3800 and took out a loan for the rest. on the loan, she paid monthly payments of $354.16 for 4 years. (a) what was the total amount jane ended up paying for the car (including the down payment and monthly payments)? (b) how much interest did jane pay on the loan?

Answer

Explanation:

Step1: Calculate total monthly payments

There are 12 months in a year and she paid for 4 years. So the number of payments is $12\times4 = 48$. Each payment is $354.16$. The total of monthly payments is $354.16\times48$. $354.16\times48=354.16\times(50 - 2)=354.16\times50-354.16\times2=17708 - 708.32 = 16999.68$.

Step2: Calculate total amount paid for car

Add the down - payment of $3800$ to the total of monthly payments. $16999.68+3800 = 20799.68$.

Step3: Calculate loan amount

The cost of the car is $19800$ and the down - payment is $3800$. So the loan amount is $19800 - 3800=16000$.

Step4: Calculate interest paid

Subtract the loan amount from the total of monthly payments. $16999.68-16000 = 999.68$.

Answer:

(a) $20799.68$ (b) $999.68$