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Calculating payments, interest, and APR on auto loan
After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $29,500 - including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $5,000. She plans to finance the rest with a $24,500, 60-month loan at a simple interest rate of 10 percent.
Question 1: What will her monthly payments be? Round the answer to the nearest cent.
Question 2: How much total interest will Isabella pay in the first year of the loan? Round the answer to the nearest cent.
Question 3: How much interest will Isabella pay over the full (60-month) life of the loan? Round the answer to the nearest cent.
Question 4: What is the APR on this loan? Round the answer to 1 decimal place.
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