Solve.
-In order to buy a $\$ 20,000$ car, you put down $\$ 2500$ and take out a loan on the balance. To pay off the loan, you pay $\$ 359.72$ per month for the following 72 months. How much more will you end up paying for the car than the original price of $\$ 20,000$ ? Round your answer to the nearest dollar.
A) $\$ 28,400.00$
B) $\$ 5900.00$
C) $\$ 25,900.00$
D) $\$ 8400.00$

Question

Quizplus · Accepted Answer

The total amount paid for the car is the down payment plus the total of all monthly payments: $\$2500 + (72 \times \$359.72) = \$25,900$. The difference between this total and the original price of the car is $\$25,900 - \$20,000 = \$5,900$. However, the question asks for how much more this total payment is compared to the original price, which has been calculated but the correct interpretation of the total amount paid over the original price is actually the sum of payments made, which includes the interest over the original price, leading to a misunderstanding in the explanation provided. The correct calculation for the total amount paid is indeed \$25,900, but the question specifically asks for how much more will be paid than the original price, which is the difference between the total amount paid and the original price, correctly calculated as \$5,900 but incorrectly matched with the choices due to a misinterpretation in the explanation process. The correct approach to find how much more was paid involves calculating the total amount paid over the loan period and subtracting the car's original price, which was initially correctly calculated but then led to a confusion in matching the answer. The total payments made over the loan period amount to \$25,900 (down payment + loan payments), and subtracting the original price of the car (\$20,000) from this total gives the correct answer of how much more was paid than the original price, which is \$5,900, indicating a mistake in the final matching of the answer choice due to a misinterpretation of the question's requirement.

Solve -In Order to Buy A $20,000\$ 20,000$20,000 Car, You Put Down

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-In Order to Buy A $\$ 20,000$ Car, You Put Down