Megan bought a car for $12,500. She made a down payment of
$3,500 and financed the rest. If she made 48 payments of $240
each, how much interest did she pay?
a. $1,900
b. $2,976
c. $2,520
d. $202.04
To find the total amount of interest paid, we need to find the total amount financed and subtract the down payment from it.
Total amount financed = $12,500 - $3,500 = $9,000
The total amount of payments made over the 48 months is:
48 x $240 = $11,520
The total interest paid is therefore:
$11,520 - $9,000 = $2,520
Therefore, the answer is c. $2,520