Question

Suppose you walk in to buy a $30,000 car, and you are able to put $3,000 down. Your dealer initially offers $3,000 for your trade. You couldn't get to your bank in time, so you
finance through the dealer. They are currently able to offer you a 4% interest rate for 48 months.
1 4 points
Calculate what your car payment would be under these terms (within a dollar)
Type your answer
2
Determine the total interest you would pay over the life of the loan assuming the same situation as in #1 (within thn dollars).

Answer 1

The total amount paid by the customer will be $32,262.5 and the amount of the interest will be $ 2,262.5.

What is APR?

APR on a credit card is the way of saying that the interest you are charged over a year is equal to roughly of your balance.

Suppose you walk in to buy a $30,000 car, and you are able to put $3,000 down.

Your dealer initially offers $3,000 for your trade.

You couldn't get to your bank in time, so you finance through the dealer.

They are currently able to offer you a 4% interest rate for 48 months.

After the down payment, the amount will be

P = $ 27,000

r = 4% = 0.00333

n = 48 months

Then the cost of the monthly payment will be

$\rm MP = P r \times \dfrac{(1+r)^n}{(1+r)^n - 1}\\\\MP = 27000 \times 0.0033 \times \dfrac{(1 + 0.0033)^{48}}{(1+0.0033)^{48} - 1}\\\\MP = 609.63$

Then the total amount paid by the customer will be

Total amount = 3000 + 609.63 × 48

Total amount = $ 32,262.5

Then the amount of the interest will be given as

Interest amount = $32,262.5 - $30,000

Interest amount = $ 2,262.5

More about the APR link is given below.

brainly.com/question/8846837

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