Math Problem Statement
Blake bought a new car and financed $11,000 to make the purchase. He financed the car for 72 months with an APR of 6.5%. Assuming he made monthly payments, determine the total interest Blake paid over the life of the loan. Round your answer to the nearest cent, if necessary.
Solution
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Math Problem Analysis
Mathematical Concepts
Loan Amortization
Interest Calculation
Algebra
Formulas
Monthly payment formula for amortized loan: M = P * (r(1+r)^n) / ((1+r)^n - 1)
Total interest = (Monthly payment * Number of payments) - Principal
Theorems
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Suitable Grade Level
Grades 9-12
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