Financial Maths, STD2 EQ-Bank 11 MC

A car is for sale at $18 000. Finance is available at $4000 deposit and monthly repayments of $380 for 5 years. What is the interest paid on the loan?

$4 800
$8 800
$18 000
$22 800

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$B$

Show Worked Solution

$\text{Deposit} =$4000$

$\text{Monthly repayments} =$380\times 12\times 5 =$22\,800$

$\text{Total paid} =4000+22\,800= \$26\,800$

$\text{Interest paid}=26\,800-18\,000=$8800$

$\Rightarrow B$