Question

Trevon is making payments on a car that costs $26,555. He makes 36 equal payments. If he rounds the equal payments up to the nearest whole dollar, about how much will he overpay after 36 months? Show your work to justify your answer.

Answer 1

$13

Explanation:

$26,555 ÷ 36 = 737.6388889 ≈ $738 per month

36 × 738 = $26,568

= $13

Answer 2

$13 will be overpaid after 36 months if payments are rounded of to nearest whole number dollar.

Explanation:

We are given the following in the question:

Total cost of car = $26,555

Number of equal installments made = 36

Payment of 1 installment =

`\displaystyle\frac{\text{Toatl cost}}{\text{Number of installments}} = (26555)/(36) = 737.6389\$`

Rounding of to nearest whole number, payment of one installment = $738

Value of 36 installments of $738 each =

`36* 738 = 26568\$`

Money overpaid after 6 months =

`26568 - 26555 = 13\$`

Thus, $13 will be overpaid after 36 months if payments are rounded of to nearest whole number dollar.