Amanda bought a car for $8,500. Her loan was for five years at a 4.6% interest rate. How much will Amanda pay for her car total, including interest?
let her monthly payment be P
P( 1 - (1+.046/12)^-60)/(.046/12) = 8500
P = 158.85
total paid = 60(158.85) = $9531.15
To find out how much Amanda will pay for her car total, including interest, we need to calculate the total amount paid over the five-year loan period.
First, we need to calculate the interest paid each year. To do this, we multiply the loan amount by the interest rate. The calculation will be as follows:
Interest paid per year = Loan amount * Interest rate
Interest paid per year = $8,500 * 0.046
Interest paid per year = $391
Now, we can calculate the total amount paid by adding the loan amount and the total interest paid over the five-year period. The calculation will be as follows:
Total amount paid = Loan amount + (Interest paid per year * Number of years)
Total amount paid = $8,500 + ($391 * 5)
Total amount paid = $8,500 + $1,955
Total amount paid = $10,455
Therefore, Amanda will pay a total of $10,455 for her car, including interest, over the five-year loan period.