Fitzgerald purchased a car for $18,980. He made a down payment of $2,240. He applied for a five-year installment loan with an interest rate of 7.4%. What is the total cost of the car after five years?

$20,078.40

$22,318.40

$17,978.76

$20,384.52

Question

Fitzgerald purchased a car for $18,980. He made a down payment of $2,240. He applied for a five-year installment loan with an interest rate of 7.4%. What is the total cost of the car after five years?

 $20,078.40

 $22,318.40

 $17,978.76

 $20,384.52

tkhunny · Answer

I still hate this question.  Did he get the loan or just apply for it?

Please tell me how much was financed, assuming he got the loan.