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morpeh [17]
3 years ago
9

Lupe made a down payment of $1600 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a

loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $240/month for 48 mo. What is the cash price of the car? (Round your answer to the nearest cent.)
Mathematics
1 answer:
docker41 [41]3 years ago
8 0

Answer:

The cash price of the car is $ 51600

Step-by-step explanation:

Interest = PRT ÷ 100

240 = { (x-1600) × 12% × (48÷12) } ÷ 100

240 = { (x-1600) × 0.12× 4 } ÷ 100

240 =<u> { (x-1600) × 0.48} </u>

              100

Cross-multiply 100 with 240 and 0.48 with 240

<u>240 × 100  </u>   = ( x-1600)

  0.48

50,000 = x-1600

x = 50,000+ 1600

x= $51600 the cash price of the car

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Answer:

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Step-by-step explanation:

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This is a linear system of equations with 3 equations and 3 unknows. In matrix notation the system is A*x = b whith:

A =

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x =

a  

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c

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-7

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Solving A*x = b gives x = Inv(A)*b, where Inv(A) is the inverse matrix of A. From calculation software (I used Excel) you get:

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