Alvin financed $3,450 to buy a new car. If he made 36 payments of
$138.50 each, how much interest did he pay on the loan?
a. $153.60
b. $415.50
c. $1,536
d. $4,986
To find the total amount of money Alvin will pay over the course of the loan, we can multiply the monthly payment by the number of payments:
$138.50 x 36 = $4,986
This is the total payment, which includes both the principal (the original amount borrowed) and the interest. To find the amount of interest, we can subtract the principal:
$4,986 - $3,450 = $1,536
Therefore, the answer is c. $1,536.