Question

Christopher has just made the final monthly payment necessary to pay off his car financing. The car had a list price of $25,995. He made a down payment of $2,434. Additionally, there was a $1,626 vehicle registration fee and a $275 documentation fee. He also paid sales tax of 8.44% on the cost of the vehicle. He included the taxes and fees with the purchase price of the car in a four-year finance agreement with an interest rate of 11.10%, compounded monthly.
After completing payment of the four-year loan, what was the total amount of money that Christopher paid for his car? Round to the nearest dollar.

a.
$23,310
b.
$27,656
c.
$34,374
d.
$36,808

Answer 1

The answer is A. 23,310