repaying a car loan\nshelbys total closed - end credit for her car (including all interest) cost…

repaying a car loan\nshelbys total closed - end credit for her car (including all interest) cost $9,478.58.\nthe table shows the schedule of her payments for the first 4 years.\nwhat is the total amount of interest shelby will pay for the car loan?\nhow many more years will it take shelby to pay off her loan?\n|year#|balance|monthly payment|end of year balance|\n|----|----|----|----|\n|1|$7000|$180|$5997.39|\n|2|$5997.39|$180|$4617.69|\n|3|$4617.69|$180|$3016.21|\n|4|$3016.21|$180|$1157.28|

repaying a car loan\nshelbys total closed - end credit for her car (including all interest) cost $9,478.58.\nthe table shows the schedule of her payments for the first 4 years.\nwhat is the total amount of interest shelby will pay for the car loan?\nhow many more years will it take shelby to pay off her loan?\n|year#|balance|monthly payment|end of year balance|\n|----|----|----|----|\n|1|$7000|$180|$5997.39|\n|2|$5997.39|$180|$4617.69|\n|3|$4617.69|$180|$3016.21|\n|4|$3016.21|$180|$1157.28|

Answer

Explanation:

Step1: Calculate total amount paid in 4 years

Monthly payment is $180. In 4 years (4 * 12 = 48 months), total payment is $180×48 = $8640.

Step2: Calculate total interest paid

Total closed - end credit is $9478.58. Initial loan amount is $7000 (balance at start of year 1). Total interest paid = Total closed - end credit - Initial loan amount = $9478.58 - $7000 = $2478.58.

Step3: Calculate remaining years to pay off loan

Remaining balance is $1157.28. Monthly payment is $180. Number of months to pay off remaining balance is $\frac{1157.28}{180}\approx6.43$ months. In years, $\frac{6.43}{12}\approx0.54$ years. But since we consider whole - year increments in this context, and she still has a balance, it will take 1 more year to pay off the loan.

Answer:

Total amount of interest: $2478.58 Number of more years: 1