Question

The car John wants to purchase costs $12,500. If he makes a down payment of $3,000, how much will interest be calculated on?

A. $9,500
B. $15,500
C. $6,500
D. $12,500

Answer 1

It would be A. 9,500

Hope it helps.

Answer 2

`\$9500`

Explanation:

Cost of car purchased by John =
`\$12,500`

Down payment made by John =
`\$3000`

To find : Amount on which interest need to be calculated

Solution :

In order to find amount on which interest need to be calculated, we need to deduct amount which have already been paid i.e the down payment from the cost of the car .

Amount on which interest need to be calculated = Cost of car purchased by John - Down payment made by John =
`\$12500-\$3000=\$9500`