Sequence and Series - Simple Interest

Kevin bought a new car priced at \(\$97\,000\). He is required to pay \(20\%\) of the selling price as the down payment. He takes a loan on the remaining amount from a bank which charges \(2.78\%\) simple interest per annum. He plans to repay the loan over \(5\) years.

1. Show that his monthly payment is \(\$1473.11\), correct your answer to the nearest cents.

   [3]

2. Hence, find the amount that Kevin needs to pay on the final month at the end of \(5\) years.

   [2]