Problem

19. KeeKee bought a car for $\$ 25,320$. If he paid $\$ 5640$ upfront ano borrowed the rest at $5 \%$ simple interest on a 5 year term, how muc interest will he pay over the life of the loan?
19b. How much will KeeKee pay total for the car?
19c. If he makes 60 equal monthly payments, how much will each on

Answer

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Answer

Final Answer: KeeKee will pay \(\boxed{4920}\) dollars in interest over the life of the loan.

Steps

Step 1 :First, we need to calculate the amount that KeeKee borrowed. This is the total cost of the car minus the upfront payment. So, \(25320 - 5640 = 19680\). Therefore, KeeKee borrowed \(\$19680\).

Step 2 :Next, we can calculate the interest paid over the life of the loan using the formula for simple interest, which is Principal * Rate * Time. The rate is given as a percentage, so we need to convert it to a decimal by dividing by 100. The time is given in years, so we don't need to convert it.

Step 3 :Substituting the values into the formula, we get \(19680 * \frac{5}{100} * 5 = 4920\). Therefore, KeeKee will pay \(\$4920\) in interest over the life of the loan.

Step 4 :Final Answer: KeeKee will pay \(\boxed{4920}\) dollars in interest over the life of the loan.

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