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18 July, 14:00

You purchase a car from a dealer for $17,500. You pay a $2,500 down payment and finance the balance with a 5 year loan. Your monthly payments are $295.20. What is the amount that you finance?

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  1. 18 July, 14:28
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    The amount which have to finance is $ 17,712

    Step-by-step explanation:

    Given as:

    The cost of dealer = $ 17,500

    The down payment for car = $ 2,500

    So, The balance amount after down payment = ($ 17,500) - ($ 2,500)

    = $ 15,000

    The loan of balance amount is finance for 5 year

    So, The number of month = 5 * 12 = 60 months

    ∵ The monthly payment amount = $ 295.20

    ∴, The total payment for 60 months = $ 295.20 * 60 = $ 17,712

    The interest which have to pay = $ 17,500 - $ 17,712 = $ 212

    Hence, The amount which have to finance is $ 17,712 Answer
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