Question

Derek buys a car for $15500. They offer him a 5 year loan at 4.2%. The monthly payment is $286.86. How will he pay for the car in the end? Round to the nearest dollars.

Answer 1

Derek will pay a total of $17,211.60 for the car, which includes the principal and the interest after making monthly payments of $286.86 over 5 years.

Step-by-step explanation:

Derek buys a car for $15,500 and takes out a 5 year loan at a 4.2% annual interest rate. The monthly payment he makes is $286.86. To calculate the total amount he will pay for the car, we need to multiply the monthly payment by the number of months in 5 years.

Here is the calculation:

• Total months in 5 years = 5 years × 12 months/year = 60 months.
• Total amount paid = Monthly payment × Total months = $286.86 × 60 = $17,211.60.

So, Derek will end up paying $17,211.60 for the car in the end when rounded to the nearest dollars. This includes both the principal and the interest over the life of the loan.