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3 years ago

6. Ria purchased a car for

Mathematics

1 answer:

Alborosie3 years ago

5 0

9514 1404 393

Answer:

a) $15,779.70

b) $13,679.70

c) $210.92

Step-by-step explanation:

a) When tax is added, the total cost is ...

total = price × (1 +tax rate)

total = $14,775 × 1.068 = $15,779.70

b) The amount financed is the difference between the total cost and the down payment.

financed = total - down35

financed = $15,779.70 -2100 = $13,679.70

c) The monthly payment is found using the amortization formula. It can also be found using any of a number of financial calculators, spreadsheets, or apps.

A = P(r/12)/(1 -(1 +r/12)^-n) . . . . annual rate r, n monthly payments, principal P

A = $13,679.70(0.035/12)/(1 -(1 +0.035/12)^-72) ≈ $210.92

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