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The total amount paid by the customer will be $32,262.5 and the amount of the interest will be $ 2,262.5.
<h3>What is APR?</h3>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
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.
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