Maths help?? (1 Viewer)

[Idkwhat_tonamethis]

I’m so confused anyone pls explain how to answer this

 

[CM_Tutor]

Repayments at $1280 per month over 5 years = 1280 x 12 x 5 = $76,800

Adding in the deposit of $7,500, total repaid = $76,800 + $7,500 = $84,300

So, total cost is $84,300 over 5 years to buy a car valued at $42,000, thus paying interest of $84,300 - $42,000 = $42,300

This is what is known as a shitty deal... for the customer, though awesome for the finance company. Simple interest, this is at least 20% pa.