What is the total cost of a monster truck that requires a $2,000 down payment and a monthly payment of $450 for five years?

What is the total cost of a monster truck that requires a $2,000 down payment and a monthly payment of $450 for five years?

• A. $4,250
• B. $29,000
• C. $27,000
• D. $34,000

Answer: (B)

To determine the total cost of the monster truck, we need to calculate both the down payment and the total cost of the monthly payments over the duration of the loan. First, the down payment is straightforward; it is $2,000 that you pay up front. Next, we need to calculate the total amount of the monthly payments. The monthly payment is $450, and the duration of the payments is five years. Since there are 12 months in a year, the total number of months over five years is calculated as follows: 5 years × 12 months/year = 60 months. Now, to find the total amount paid in monthly payments, we multiply the monthly payment by the total number of months: $450/month × 60 months = $27,000. Now, we need to add the down payment to the total amount paid in monthly installments to get the overall cost of the truck: $2,000 (down payment) + $27,000 (monthly payments) = $29,000. Thus, the total cost of the monster truck amounts to $29,000, confirming that this is the correct choice.

To determine the total cost of the monster truck, we need to calculate both the down payment and the total cost of the monthly payments over the duration of the loan.

First, the down payment is straightforward; it is $2,000 that you pay up front.

Next, we need to calculate the total amount of the monthly payments. The monthly payment is $450, and the duration of the payments is five years. Since there are 12 months in a year, the total number of months over five years is calculated as follows:

5 years × 12 months/year = 60 months.

Now, to find the total amount paid in monthly payments, we multiply the monthly payment by the total number of months:

$450/month × 60 months = $27,000.

Now, we need to add the down payment to the total amount paid in monthly installments to get the overall cost of the truck:

$2,000 (down payment) + $27,000 (monthly payments) = $29,000.

Thus, the total cost of the monster truck amounts to $29,000, confirming that this is the correct choice.