Question

To pay for a $17,400 camper, Lisa made a down payment of $3500 and took out a loan for the rest. On the loan, she paid monthly payments of $307.68 for 4 years.

(a) What was the total amount Lisa ended up paying for the camper (including the down payment and monthly payments)?
(b) How much interest did Lisa pay on the loan?

Answer 1

Lisa paid a total of $18,268.64 for the camper, including her down payment and monthly payments. She paid $868.64 in interest on the loan, which was the difference between the amount borrowed and the total amount she paid back.

Step-by-step explanation:

To calculate the total amount Lisa paid for the camper, we need to add the down payment and all the monthly payments she made.

Total Paid for Camper

Lisa's down payment: $3500

Monthly payments: $307.68 for 4 years (4 years * 12 months/year = 48 months)

Total from monthly payments: 307.68 * 48 = $14,768.64

Total paid (down payment + monthly payments): $3500 + $14,768.64 = $18,268.64

Interest Paid on Loan

Amount borrowed (price of camper - down payment): $17,400 - $3500 = $13,900

Total amount paid for the loan (monthly payments total): $14,768.64

Interest paid: Total paid for loan - Amount borrowed = $14,768.64 - $13,900 = $868.64

Lisa paid a total of $18,268.64 for the camper and $868.64 in interest over the course of the loan.