Question
upstudy study bank question image url

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?

Ask by Wyatt Davison. in the United States
Feb 27,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

(a) Mai paid a total of $23,630.40 for the car, which includes the down payment and monthly loan payments. (b) Mai paid $1,430.40 in interest on the loan.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

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.

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy