You purchase a car from a dealer for $17,500. You pay a $2,500 down payment and finance the balance with a 5 year loan. Your monthly payments are $295.20. What is the amount that you finance?

The amount which have to finance is $ 17,712

Step-by-step explanation:

Given as:

The cost of dealer = $ 17,500

The down payment for car = $ 2,500

So, The balance amount after down payment = ($ 17,500) - ($ 2,500)

= $ 15,000

The loan of balance amount is finance for 5 year

So, The number of month = 5 * 12 = 60 months

∵ The monthly payment amount = $ 295.20

∴, The total payment for 60 months = $ 295.20 * 60 = $ 17,712

The interest which have to pay = $ 17,500 - $ 17,712 = $ 212

Hence, The amount which have to finance is $ 17,712 Answer