A car costs $21,500, and you're offered a loan that requires $800 down and a monthly payment of $405.02 for 60 months, how much will you pay in interest? Round your answer to the nearest dollar.

To calculate the total interest paid on the loan, we'll first determine the total amount you pay over the life of the loan and then subtract the principal (the actual loan amount) to find the interest.

### Step 1: Determine the loan amount
The car costs $21,500, and you're making an $800 down payment. So, the loan amount will be:

\[
\text{Loan Amount} = 21,500 - 800 = 20,700
\]

### Step 2: Calculate the total amount paid over 60 months
The monthly payment is $405.02, and you'll make 60 payments. So, the total amount paid over the life of the loan is:

\[
\text{Total Payments} = 405.02 \times 60 = 24,301.20
\]

### Step 3: Calculate the interest paid
Now, subtract the loan amount from the total amount paid to find the interest:

\[
\text{Interest Paid} = 24,301.20 - 20,700 = 3,601.20
\]

Rounding to the nearest dollar:

\[
\boxed{3,601}
\]

You will pay **$3,601** in interest over the course of the loan.

Would you like more details or have any other questions?

### Related Questions:
1. How do you calculate the interest rate if only the total interest and loan amount are known?
2. What happens if you make an extra monthly payment on the loan?
3. How can you determine the APR (annual percentage rate) for this loan?
4. How does the down payment affect the total interest paid over time?
5. What is the difference between simple and compound interest in loan payments?

### Tip:
Paying extra towards the principal each month can reduce the total interest paid on a loan.

Calculate the interest paid on a car loan of $21,500 with an $800 down payment and $405.02 monthly payments for 60 months. Learn step-by-step how to find the total payments, loan amount, and interest. Suitable for Grades 9-12 students learning basic loan and interest calculations.

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