12,500 - 3,500 = 9,000
48 * 240 = 11,520
11,520 - 9,000 = ____ total interest payments
$3,500 and financed the rest. If she made 48 payments of $240
each, how much interest did she pay?
48 * 240 = 11,520
11,520 - 9,000 = ____ total interest payments
1. Start with the total cost of the car: $12,500
2. Deduct the down payment made by Megan: $3,500
Total amount financed = $12,500 - $3,500 = $9,000
Now, we'll calculate the total amount Megan paid over 48 payments.
3. Multiply the monthly payment by the number of payments: $240 x 48 = $11,520
Finally, we'll subtract the total amount financed from the total payments made to find the interest paid.
4. Interest paid = Total payments - Total amount financed
Interest paid = $11,520 - $9,000 = $2,520
Therefore, Megan paid $2,520 in interest.
The total amount Megan paid over the 48 payments can be found by multiplying the payment amount by the number of payments:
Payment amount = $240
Number of payments = 48
Total amount paid = Payment amount x Number of payments
= $240 x 48
= $11,520
To calculate the amount Megan initially financed, we subtract the down payment from the total cost of the car:
Total cost of the car = $12,500
Down payment = $3,500
Amount financed = Total cost of the car - Down payment
= $12,500 - $3,500
= $9,000
Now we can calculate the amount of interest Megan paid by subtracting the amount financed from the total amount paid:
Interest paid = Total amount paid - Amount financed
= $11,520 - $9,000
= $2,520
Therefore, Megan paid $2,520 in interest.