pay for an \( \$ 18,200 \) truck, Sam made a down payment of \( \$ 4900 \) and took out a loan for the rest. On the loan, he paid monthly payments of \( \$ 294,40 \) for 4 ars. (a) What was the total amount Sam ended up paying for the truck (including the down payment and monthly payments)? (b) How much interest did Sam pay on the loan? (b

Let's break down Sam's payments to determine both the total amount paid for the truck and the interest he incurred on the loan. ### Given: - **Total Cost of the Truck:** \$18,200 - **Down Payment:** \$4,900 - **Loan Amount:** \$18,200 - \$4,900 = \$13,300 - **Monthly Payment:** \$294.40 - **Loan Term:** 4 years (which is 48 months) --- ### **a) Total Amount Sam Ended Up Paying for the Truck** To find the **total amount paid**, we need to sum the down payment and all the monthly payments made over the loan term. 1. **Calculate Total Monthly Payments:** \[ \text{Total Monthly Payments} = \text{Monthly Payment} \times \text{Number of Months} = \$294.40 \times 48 = \$14,131.20 \] 2. **Add Down Payment:** \[ \text{Total Amount Paid} = \text{Down Payment} + \text{Total Monthly Payments} = \$4,900 + \$14,131.20 = \$19,031.20 \] **Answer:** Sam paid a total of **\$19,031.20** for the truck. --- ### **b) Interest Paid on the Loan** The **interest paid** is the difference between the total amount paid over the loan term and the original loan amount. 1. **Total Paid Over Loan Term:** \$14,131.20 2. **Original Loan Amount:** \$13,300 3. **Calculate Interest:** \[ \text{Interest Paid} = \text{Total Paid} - \text{Loan Amount} = \$14,131.20 - \$13,300 = \$831.20 \] **Answer:** Sam paid **\$831.20** in interest on the loan. --- ### **Summary** - **Total Amount Paid for the Truck:** \$19,031.20 - **Total Interest Paid on the Loan:** \$831.20