Answer:
Total purchase = $28498.685
In cent = 2849868.5 cent.
Step-by-step explanation:
Given : You have decided to purchase a car for 175.13.
To find : What is the total purchase price of the car including tax, license, and title?
Solution :
Price of car = $25,625
Sales tax = 7.5% = 0.075
The total purchase price of the car including tax is
T=25625\times 0.075=\$1921.875T=25625×0.075=$1921.875
Title charges are $175.13.
The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months.
10% down payment on price of car
25625\times 0.10=2562.525625×0.10=2562.5
25625-2562.5=23062.525625−2562.5=23062.5
The amount will be $23062.5
Now, we find the monthly payment,
Monthly payment, M=\frac{\text{Amount}}{\text{Discount factor}}M=
Discount factor
Amount
Discount factor D=\frac{1-(1+i)^{-n}}{i}D=
i
1−(1+i)
−n
Rate = 9%=0.09
i=\frac{0.09}{12}=0.0075i=
12
0.09
=0.0075
Time n=36 month
Now, put all the values we get,
D=\frac{1-(1+i)^{-n}}{i}D=
i
1−(1+i)
−n
D=\frac{1-(1+0.0075)^{-36}}{0.0075}D=
0.0075
1−(1+0.0075)
−36
D=\frac{1-(1.0075)^{-36}}{0.0075}D=
0.0075
1−(1.0075)
−36
D=\frac{0.2358}{0.0075}D=
0.0075
0.2358
D=31.44D=31.44
Monthly payment, M=\frac{\text{Amount}}{\text{Discount factor}}M=
Discount factor
Amount
M=\frac{23062.5}{31.44}M=
31.44
23062.5
M=733.38M=733.38
Monthly payment is $733.38
For 36 months the payment is 733.38\times 36=26401.68733.38×36=26401.68
Licence = $26401.68
The total purchase price of the car including tax, license, and title
Total purchase = 1921.875 +1921.875+175.13 +$26401.68
Total purchase = $28498.685
1 dollar = 100 cent
$28498.685 = 2849868.5 cent.
Step-by-step explanation:
