Over the 5 years of an auto loan, $24,000 was paid to purchase an $18,000 car. How much was the interest on the loan?(1 point)

Question

Responses

$24,000
$24,000

$42,000
$42,000

$6,000
$6,000

$18,000

Answer 1

To find the amount of interest paid on the auto loan, we can use the following formula:

\[ \text{Interest} = \text{Total Payments} - \text{Principal} \]

In this case:

• Total Payments = $24,000
• Principal (Cost of the car) = $18,000

Now we can calculate the interest:

\[ \text{Interest} = 24,000 - 18,000 = 6,000 \]

Therefore, the interest on the loan is $6,000.