Getting started $($month $0)$: Here is how the process works. When you buy the car, right at month $0,$

you owe the full $$15500.$ Applying the $5\%$ interest to this $(5\%$ is $"5$ per $$100"$ or $"0\mathrm{.}05$ per $$1),$ you

would owe ${0\mathrm{.}05}^{***}$$$15500=$$$775$ for the year. Since this is a monthly loan, we divide this by $12$ to

find the interest payment of $$64\mathrm{.}58$ for the month. You pay $$293$ for the month, so $$64\mathrm{.}58$ of your

payment goes toward interest $($and is never seen again...$),$ and $(293-64\mathrm{.}58)=$$$228\mathrm{.}42$ pays down

your loan.

$($Month $1)$: You just paid down $$228\mathrm{.}42$ off your loan, so you now owe $$15271\mathrm{.}58$ for the car. Using

a similar process, you would owe ${0\mathrm{.}05}^{**}$$$15271\mathrm{.}58=$$$763\mathrm{.}58$ for the year, so $($dividing by $12),$ you

owe $$63\mathrm{.}63$ in interest for the month. This means that of your $$293$ monthly payment, $$63\mathrm{.}63$ goes

toward interest and $$229\mathrm{.}37$ pays down your loan.

The values from above are included in the table. Continue the process for the rest of the

first year of the loan.

What is the total amount paid in interest over this first year of the loan?