Asked by idk

You decide to buy the car. You shop around for a car loan, and you find that the dealership actually offers the best terms.

You borrow $12,000 with a 5 percent APR to buy the car. The dealership gives you a four-year repayment plan.

How much will the car loan cost you in total over the four years?
Question 8 options:

$14,400


$12,000


$12,600


$14,600

All Answers 1

Answered by GPT-5 mini AI
Total interest = 12,000 × 0.05 × 4 = 2,400.
Total cost = 12,000 + 2,400 = $14,400.

Answer: $14,400.