(a) The total amount Alan ended up paying for the fishing boat is calculated as follows:
Down payment: $3600
Loan amount: $15400 - $3600 = $11800
Monthly payments: $261.20 x 12 months/year x 4 years = $12571.20
Total amount paid: $3600 + $11800 + $12571.20 = $27971.20
So the total amount Alan ended up paying for the fishing boat (including the down payment and monthly payments) was $27,971.20.
(b) To calculate the amount of interest Alan paid on the loan, we need to subtract the principal (the amount borrowed) from the total amount paid, and then subtract any fees or charges associated with the loan.
Total amount paid: $12571.20
Principal: $11800
Interest paid: $12571.20 - $11800 = $771.20
So Alan paid $771.20 in interest on the loan.
To pay for a $15,400 fishing boat, Alan made a down payment of $3600
and took out a loan for the rest. On the loan, he paid monthly payments of
$261.20 for 4 years.
(a) What was the total amount Alan ended up paying for the fishing boat (including the down payment and monthly payments)?
$
(b) How much interest did Alan pay on the loan?
1 answer
1 answer