purchase \( \$ 13,500 \) worth of machinery for her business, Christine made a down payment of \( \$ 1500 \) and took out isiness loan for the rest. After 3 years of paying monthly payments of \( \$ 365.07 \), she finally paid off the loan. \( \begin{array}{l}\text { (a) What cost and interest for a loan } \\ \text { (including the down payment and monthly payments)? } \\ \text { (b) How much interest did Christine pay on the loan? } \\ \$ \square\end{array} \$ \square \)
Solución de inteligencia artificial de Upstudy
Responder
Solución

¡Inicia sesión para desbloquear respuestas gratis!
Una plataforma de aprendizaje en la que confían millones de estudiantes y profesores reales.

Respondido por UpStudy AI y revisado por un tutor profesional
The Deep Dive
To calculate the total cost and interest for the loan Christine took out for the machinery, we first need to find out how much she borrowed. The cost of the machinery was \( \$ 13,500 \), and after making a down payment of \( \$ 1,500 \), the amount she financed with a loan was \( \$ 13,500 - \$ 1,500 = \$ 12,000 \). Now, Christine paid \( \$ 365.07 \) monthly for 3 years, which amounts to \( 3 \times 12 \) months, resulting in 36 monthly payments. Multiplying the monthly payment by the total number of payments gives us: \[ \$ 365.07 \times 36 = \$ 13,141.52 \] This total represents all the payments made on the loan. To find the total cost, we add the down payment: \[ \text{Total Cost} = \$ 13,141.52 + \$ 1,500 = \$ 14,641.52 \] Next, to determine how much interest Christine paid on the loan, we calculate the difference between the total amount paid for the loan and the original loan amount: \[ \text{Total Interest} = \$ 13,141.52 - \$ 12,000 = \$ 1,141.52 \] So, to summarize: (a) Total cost including down payment and monthly payments: \( \$ 14,641.52 \) (b) Total interest paid on the loan: \( \$ 1,141.52 \)
