32000-6000 = $26,000 is the amount he financed
619.15 x 48 = 29719.20 is the total amount he paid back
29719.20- 26000 = 3,719.20 is the amount of interest he paid (finance charge)
The amount of total finance my friend has given to the finance company will be $3719.20.
Simple interest is a way to figure out how much interest will be charged on a sum of money at a specific rate and for a specific duration of time.
Unlike compound interest, which adds the interest from the principal of prior years to determine the interest of the following year, the principal amount in simple interest remains constant.
Given that the
cost of car = $32000
Down payment = $6000
Amount that he need to pay = $32000 - $6000 = $ 26000
Rate of interest = 6.76%
The total amount that he paid excludes the down payment = 619.15 ×48
⇒ $29719.20
Total amount of finance charge = $29719.20 - $2600
⇒ $3719.20 so it will be a finance charge.
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