Question

Alexia made a down payment of $1825 on a car, and then paid 36 monthly payments of $415. If the loan had 0% interest, how much did Alexia pay for the car?

Answer 1

General Idea:

Amount of money paid for a loan with 0% interest can be given by the below formula:

Total amount = Down payment + Number of months* Monthly Payment

Applying the concept:

Substituting $1825 for down payment, 36 for number of months and $415 for monthly payment in the formula given above, we get...

Total amount
`= 1825+36* 415=1825+14940=16,765`

Conclusion:

Alexia paid an amount of $16,765 for the car.