Carter bought a new car and financed $25,000 to make the purchase. He financed the car for 48 months with an APR of 4.5%. Assuming he made monthly payments, determine the total interest Carter paid over the life of the loan. Round your answer to the nearest cent, if necessary.

Question

Mathematics

Shirley

28 February, 11:15

Carter bought a new car and financed $25,000 to make the purchase. He financed the car for 48 months with an APR of 4.5%. Assuming he made monthly payments, determine the total interest Carter paid over the life of the loan. Round your answer to the nearest cent, if necessary.

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Answers (1)

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Braedon Bowen · Answer 1

Carter paid a total interest of $2250 (9% of the cost of the car) for the car.

Step-by-step explanation:

cost = $25000

Time = 48 months

APR = 4.5%

Interest = (25000 x 4.5 x 2) / 100

= $2250

Percentage of interest paid = (2250/25000) x 100

= 9%

Carter paid a total interest of $2250 (9% of the cost of the car) for the car.