Question

Bernie has decided to purchase a new car with a list price of $18,575. Sales tax in Bernie’s state is 7.40%, and he will be responsible for a $795 vehicle registration fee and a $110 documentation fee. Bernie plans to trade in his existing car, a 1999 Buick Riviera in good condition, and finance the rest of the cost for five years at an interest rate of 12.77%, compounded monthly. Assuming that the dealer gives Bernie the listed trade-in price for his car, what will his monthly payment be? Round all dollar values to the nearest cent

B. 439.12 is the correct answer.

Answer 1

$439.12

Explanation:

Answer 2

18,575 x 7.40% = 1,374.55

18,575 + 1,374.55 = 19,949.55

19,949.55 + 795 + 110 = 20,854.55

20,854.55 divided by 5 = 4,170.91

4,170.91 divided by 12 = 347.58

347.58 x 12.77% = 44.39

347.58 + 44.39 = 391.97

i am assuming that is the answer but since is see that you have 439.12 as an answer im not so sure