Question

(Total Costs and Debt Payoff LC)

A borrower purchased a car for $21,750 and made a down payment of $2,275. The borrower was approved for a five-year installment loan with an interest rate of 9.75% and monthly payments of $411.39. What is the total cost of the car after five years?

$32,353.13
$24,683.40
$26,958.40
$28,969.06

Answer 1

Total cost of the car after five years:

Down payment: $2,275
Monthly payment for 5 years: $411.39 * 12 months * 5 years = $24,683.40
Total cost = Down payment + Total monthly payment
Total cost = $2,275 + $24,683.40 = $26,958.40

Therefore, the total cost of the car after five years is $26,958.40.

Answer 2

awsome