You borrowed $5,000 from your parents to purchase a used car. You have agreed to make payments of $250 per month plus an additional 1% interest on the unpaid balance of the loan.
1.Is this problem an example of a geometric series or an arithmetic series? Support your answer mathematically by applying the concepts from this unit.
2.Find the first year’s monthly payments that you will make and the unpaid balance after each month.
3.Find the total amount of interest paid over the term of the loan.

I found a version of this that people tried to answer but I need more explanation and help to get the final answer. Thanks.

Question

You borrowed $5,000 from your parents to purchase a used car. You have agreed to make payments of $250 per month plus an additional 1% interest on the unpaid balance of the loan.
1.Is this problem an example of a geometric series or an arithmetic series? Support your answer mathematically by applying the concepts from this unit.
2.Find the first year’s monthly payments that you will make and the unpaid balance after each month.
3.Find the total amount of interest paid over the term of the loan.

I found a version of this that people tried to answer but I need more explanation and help to get the final answer. Thanks.

anonymous · Answer

What equation should I use to get the total at the end of the year? I was trying 
$$\sum_{1}^{12}(n−(250+(.01(n))))$$