Answer: $1250
Step-by-step explanation:
Given data:
Cost of car = $35,000
Down payment made = $2500
Interest rate = 5.25%
Duration of loan = 6 years
Loan Amount = $3000
Solution:
I = prt/100
where
I = interest
p = principal ($30,000)
r = 5.25%
t = 6
I = $30,000 * 5.25 * 6 /100
= $9450
interest payable on the loan in 6 years is $9450.
Rental
=$600 monthly * 6(12)
= $43,200
Amount made from renting the car is $43,200.
• Money saved by Benjamin in 6 years
= $43,200 – $32500 + $9450
= $43,200 – $41,950
= $1250
Benjamin would have saved $1250 in 6 years.