Question

You purchase a car making a down payment of 3,000 and 6 monthly payments of $225. How much have you paid so far for the car?

• A. $3225
• B. $4350
• C. $5375
• D. $6550
• E. $6398

Hint:

Break down the problem into its parts: the one-time payment (down payment) and the recurring payments (installments). Calculate the total for the recurring part first, then add the one-time payment.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
This problem requires calculating the total amount paid, which is the sum of an initial down payment and the total of all monthly payments.
Step 2: Key Formula or Approach:
\[ \text{Total Paid} = \text{Down Payment} + (\text{Number of Payments} \times \text{Amount per Payment}) \] Step 3: Detailed Explanation:
Identify the components of the payment:
Down Payment = $3,000
Number of Monthly Payments = 6
Amount of each Monthly Payment = $225
First, calculate the total amount from the monthly payments: \[ \text{Total from Monthly Payments} = 6 \times \$225 \] \[ 6 \times \$200 = \$1200 \] \[ 6 \times \$25 = \$150 \] \[ \text{Total from Monthly Payments} = \$1200 + \$150 = \$1350 \] Next, add the down payment to this total: \[ \text{Total Paid So Far} = \text{Down Payment} + \text{Total from Monthly Payments} \] \[ \text{Total Paid So Far} = \$3,000 + \$1,350 = \$4,350 \] Step 4: Final Answer:
You have paid a total of $4,350 so far for the car. The correct option is (B).