Question
Suppose you see a car with an advertised price of \( \$ 14,100 \) at \( \$ 410.83 \) per month for 4 years. What is the amount of interest paid? (Round your answer to the nearest cent.) \( \$ \)
Ask by Vega Young. in the United States
Feb 26,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The interest paid is \$5,619.84.
Solution
The total amount paid is determined by multiplying the monthly payment by the number of months. Since the car is financed over 4 years, that is 48 months.
Total amount paid = 48 × $410.83 = $19,719.84
The amount of interest paid is the difference between the total amount paid and the advertised price.
Interest paid = $19,719.84 - $14,100.00 = $5,619.84
So, the amount of interest paid is $5,619.84.
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Simplify this solution Mind Expander
To find the total interest paid, first calculate the total amount paid over the 4 years. Multiply the monthly payment by the total number of payments: Total Paid = Monthly Payment × Number of Payments Total Paid = \( 410.83 \times 48 = 19,699.84 \) Next, subtract the advertised price of the car from the total amount paid: Interest Paid = Total Paid - Advertised Price Interest Paid = \( 19,699.84 - 14,100 = 5,599.84 \) So, the amount of interest paid is \( \$ 5,599.84 \).
