The Solution:
Given that a car that cost $10500 was offered as a loan with a down payment of $800.
This means the loan balance will now be:
[tex]\text{Loan baleance=10500-800= \$9700}[/tex]
The loan payment plan is a monthly payment of $187.53 for 60 months.
[tex]\text{Total Payment=187.53}\times60=\text{ \$11251.80}[/tex]
We are required to find how much was paid in interest.
We shall take the difference between the total payment and the loan balance.
[tex]\begin{gathered} \text{Interest paid=Total payment-Loan balance} \\ \text{Interest paid=11251.80-9700= \$1551.80}\approx\text{ \$1552} \end{gathered}[/tex]
Therefore, the correct answer is $1552
