Financial Maths, STD2 EQ-Bank 14 MC

Tom purchased a car using a finance package. He paid a deposit of $6500 and the total amount he paid for the car was $38 900. The loan was for 4 years with equal monthly repayments.

What was Tom's monthly repayment?

$675
$810
$8100
$9725

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$A$

Show Worked Solution

$\text{Total repayments:}$	$=\text{Total amount paid}-\text{Deposit}$
	$=38\,900-6500$
	$=$32\,400$

$\text{Number of repayments}=4\times 12=48$

$\text{Monthly repayment:}=\dfrac{32\,400}{48}=$675\ \text{per month}$

$\Rightarrow A$

\(\text{Total repayments:}\)	\(=\text{Total amount paid}-\text{Deposit}\)
	\(=38\,900-6500\)
	\(=$32\,400\)