Question

Harold Collins made a down payment of 700 on a car and will pay

230 a month for 48 months. What will be the total cost (including
both principal and interest) of the vehicle?

Answer 1

Answer: $11,740

Explanation:

To calculate the total cost of the vehicle, including both the principal and interest, you can use the formula for the total cost of a loan:

Total Cost = Down Payment + (Monthly Payment × Number of Months)

In this case:

Down Payment = $700

Monthly Payment = $230

Number of Months = 48

Now, plug these values into the formula:

Total Cost = $700 + ($230 × 48)

Total Cost = $700 + $11,040

Total Cost = $11,740

So, the total cost of the vehicle, including both principal and interest, will be $11,740.