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blondinia [14]
3 years ago
12

Suzanne has purchased a car with a list price of $23,860. She traded in her previous car, which was a Dodge in good condition, a

nd financed the rest of the cost for five years at a rate of 11.62%, compounded monthly. The dealer gave her 85% of the listed trade-in price for her car. She was also responsible for 8.11% sales tax, a $1,695 vehicle registration fee, and a $228 documentation fee. If Suzanne makes a monthly payment of $455.96, which of the following was her original car?
Mathematics
2 answers:
gulaghasi [49]3 years ago
5 0

Answer:

The answer is A

Step-by-step explanation:

THE PERSON ABOVE IS WRONG

Alinara [238K]3 years ago
3 0
The interest is 11.62% compounded monthly. Converting this to an effective rate:
i = (1 + 0.1162/12)^12 - 1
i = 0.1226

We use this formula to solve the problem:
455.96 = (23860(1.0811) + 1695 + 228 - C) [0.0811(1+0.0811)^3]/[(1+0.0811)^3 - 1]
Solving for C
C = 4413.13

The cost of her car was $4,413.13.
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