To pay for a \( \$ 22200 \) car, Mai made a down payment of \( \$ 3900 \) and took out a loan for the rest. On the loan, she paid monthly payments of \( \$ 328.84 \) for 5 years. (a) What was the total amount Mai ended up paying for the car (including the down payment and monthly payments)? (b) How much interest did Mai pay on the loan?
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Beyond the Answer
To find the total amount Mai ended up paying for the car, we first need to calculate the total amount she paid in monthly payments over 5 years. There are 12 months in a year, so 5 years mean \( 5 \times 12 = 60 \) months. We can then multiply the monthly payments by the total number of months: \[ 60 \times 328.84 = 19730.40 \] Next, we add the down payment of \( \$ 3900 \): \[ 19730.40 + 3900 = 23630.40 \] Thus, the total amount Mai paid for the car is \( \$ 23630.40 \). To find out how much interest Mai paid on the loan, we need to determine the amount of the loan first. The loan amount is the total price of the car minus the down payment: \[ 22200 - 3900 = 18300 \] Now, to find the total payments on the loan we already calculated this part as \( \$ 19730.40 \). The interest paid can be found by subtracting the original loan amount from the total payments: \[ 19730.40 - 18300 = 1430.40 \] Therefore, Mai paid \( \$ 1430.40 \) in interest on the loan.
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