a) To purchase the car, Lindsay will need to finance the dollar amount of <u>$10,000</u>.
b. In one year, the dollar amount of interest Lindsay will pay on loan is $300.
c. In two years, for Lindsay to finally OWN the car, the actual cost of the vehicle will be in dollars, that is (down payment + amount financed + 2 years interest = actual cost of the car) is <u>$12,600</u>.
<h3>What is a down payment?</h3>
A down payment is an initial payment made upfront for the purchase of an asset, which is being financed by another entity at a stated interest rate.
A down payment reduces the amount that is subject to the loan terms.
<h3>Data and Calculations:</h3>
Cost of a car = $12,000
Downpayment = $2,000
Car Loan = $10,000
APR = 3%
Interest for two years = $600 ($10,000 x 3% x 2)
Thus, since Lindsay is making a down payment of $2,000 for the car, she will finance $10,000 of the purchase costs.
Learn more about down payments at brainly.com/question/26173748
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