A car loan of $425 monthly at 3 percent annually for 60 months means you pay how much additional over the cost of $28,000 if you paid $5,000 as an initial down payment?
To calculate the additional amount you will pay over the cost of $28,000 by taking out a car loan with a $5,000 down payment, you need to determine the total amount you will pay in monthly payments over the course of the loan.
First, subtract the down payment from the total cost of the car:
$28,000 - $5,000 = $23,000
Next, calculate the total amount paid over 60 months at $425 per month:
$425 * 60 = $25,500
Now, subtract the initial loan amount from the total amount paid:
$25,500 - $23,000 = $2,500
Therefore, you will pay an additional $2,500 over the cost of $28,000 by taking out a car loan with a $5,000 down payment.