Question

determine whether the statement is true or false. if the statement is false, make the necessary change(s) to produce a true statement.
the interest on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan.
choose the correct answer below.
a. the statement is true.
b. the statement is false. the annual rate on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan.
c. the statement is false. the principal on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan.
d. the statement is false. the monthly payment on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan.

Explanation:

To determine the interest on a car loan, we use the formula: Interest = Total of all monthly payments - Loan amount. The principal is the loan amount itself, not calculated as the difference. The annual rate involves more complex calculations (like amortization formulas), and the monthly payment is a set amount (or calculated via loan formulas), not the difference. The statement says interest is total payments minus loan, which is correct. Wait, no—wait, the options: Let's analyze each.

Option A: Says annual rate is total payments - loan. No, annual rate is a percentage, not that difference.

Option B: Principal is total payments - loan? No, principal is the loan amount.

Option C: Monthly payment is total payments - loan? No, monthly payment is a single payment, total payments is monthly * number of months.

Wait, the original statement: "The interest on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan." That statement is true. Wait, but the options: Wait, the question is to choose the correct answer about the statement. Wait, the options are:

A. The statement is true.

B. The statement is false. The annual rate...

C. The statement is false. The principal...

D. The statement is false. The monthly payment...

So the original statement (about interest) is true. So option A is correct? Wait, no—wait, interest is total payments minus principal (loan amount). So the statement says interest = total monthly payments - loan amount. That is correct. So the statement is true, so option A.

Wait, let's recheck:

Interest on a loan is the cost of borrowing, so total amount repaid (total monthly payments * number of months) minus the principal (loan amount) is the interest. So the statement says "the interest on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan." That is correct. So the statement is true, so option A.

Answer:

A. The statement is true.