Mark borrows $15,000 to buy a new car.His loan has an annual interest rate of 6.5%,compounded monthly,and his monthly payment is $293.49.How much will he have paid in interest when he has finished repaying his loan in 60 months?
A)$43.49
B)$1,575.50
C)$2,609.40
D)$17,609.40

Question

Quizplus · Accepted Answer

To find out the total amount of interest Mark will pay over 60 months, we need to first calculate how much he will pay in total over 60 months:
Total amount repaid = monthly payment x number of months
Total amount repaid = $293.49 x 60
Total amount repaid = $17,609.40

Now we can subtract the amount borrowed to find the total amount of interest paid:
Total interest paid = total amount repaid - amount borrowed
Total interest paid = $17,609.40 - $15,000
Total interest paid = $2,609.40

Therefore, the answer is C.

Mark Borrows $15,000 to Buy a New Car