Question 1196132
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L = loan amount = unknown
P = monthly payment = 400
i = monthly interest rate = 0.24/12 = 0.02
n = number of months = 24


Use those values in the monthly payment formula to solve for L
P = (L*i)/(1 - (1+i)^(-n))
400 = (L*0.02)/(1 - (1+0.02)^(-24))
400 = (0.02L)/(0.37827851206116)
0.02L = 0.37827851206116*400
0.02L = 151.311404824464
L = 151.311404824464/0.02
L = 7565.5702412232
L = 7565.57
This is the loan amount.


John made a down payment of R3000
He is loaned R7565.57 to pay the remaining cost of the car.


The price of the car is 3000+7565.57 = <font color=red>R10,565.57</font>


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John makes 24 payments of R400 each
He pays a total of 24*400 = R9600
This total consists of principal (the amount he was loaned) and interest. 


Subtract off the loan amount to find the interest
9600 - 7565.57 = <font color=red>R2034.43</font> is the interest.


The down payment is NOT part of this calculation. 
As far as the bank is concerned, the car costs R7565.57


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<font color=red>Answers:</font>
The price of the car is <font color=red>R10,565.57</font>
The total interest paid is <font color=red>R2034.43</font>
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