Financial Maths, STD2 EQ-Bank 35

A used car is for sale at $19 500. Priya purchases it using a finance package with a 15% deposit and weekly repayments of $143.27 for 3 years.

What is the interest Priya will pay? (3 marks)

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$$5775.12$

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$\text{Deposit}$

$=\dfrac{15}{100}\times 19\,500=$2925$

$\text{Weeks in 3 years}=3\times 52=156$

$\text{Total repayments}$	$=156\times 143.27$
	$=$22\,350.12$

$\text{Total cost}$	$=2925+22\,350.12$
	$=$25\,275.12$

$\therefore\ \text{Interest paid}$	$=25\,275.12-19\,500$
	$=$5775.12$

\(\text{Total repayments}\)	\(=156\times 143.27\)
	\(=$22\,350.12\)

\(\text{Total cost}\)	\(=2925+22\,350.12\)
	\(=$25\,275.12\)

\(\therefore\ \text{Interest paid}\)	\(=25\,275.12-19\,500\)
	\(=$5775.12\)