Maura bought a car for $13,500. She made a down payment of
$4,000 and financed the rest. If she made 48 payments of $230
each, how much interest did she pay?
a. $2,400
b. $1,540
c. $460
d. $2,875
To find the total amount of interest paid, we need to subtract the amount financed from the total amount paid over 48 payments:
Total amount paid = 48 payments of $230 = $11,040
Amount financed = $13,500 - $4,000 = $9,500
Total interest paid = Total amount paid - Amount financed = $11,040 - $9,500 = $1,540
Therefore, the answer is (b) $1,540.