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
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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
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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
