Question: While buying a new car, Prisha made a down payment of $1,000 and agreed to make month-end payments of $290 for the next 5 years

While buying a new car, Prisha made a down payment of $1,000 and agreed to make month-end payments of $290 for the next 5 years and 6 months. She was charged an interest rate of 3% compounded semi-annually for the entire term.

a. What was the purchase price of the car?

b. What was the total amount of interest paid over the term?

ROUND TO THE NEAREST CENT

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