Question

Nina buys a used car from Leon’s Used Cars and pays a $500 down payment and $299 per month for 48 months. The cash price is $12,500.00. How much interest does Nina pay if she chooses NOT to pay the cash price?

Answer 1

The interest is $1852

Explanation:

We are given

down payment = $500

$299 per month for 48 months

per month installment =$299

total months =48

total amount paid = (per month installment)*( total months)

now, we can plug values

total amount paid is

`=299* 48`

`=14352`

total amount paid is $14352

The cash price is $12,500.00

so,

interest = (total amount paid)-( cash price)

so, interest is

`=14352-12500`

`=1852`