Question
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)
Responses
$24,000
$24,000
$42,000
$42,000
$6,000
$6,000
$18,000
Responses
$24,000
$24,000
$42,000
$42,000
$6,000
$6,000
$18,000
Answers
GPT-4o mini
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**.
\[
\text{Interest} = \text{Total Payments} - \text{Principal}
\]
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**.