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17 votes
17 votes
If the price of a car is $5,600 and has a down payment of 20%, how much is the total loan if the tax rate is 4%?

User Daniel Albert
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1 Answer

11 votes
11 votes

From the information given,

The price of the car is $5600. There is a tax rate of 4% on the car. This means that the amount of tax charged on the car is

4/100 x 5600 = 224

The total cost of the car is the sum of the tax and the inital price of the car. thus,

Total cost of car = 5600 + 224 = $5824

The down payment is 20%. This means that the amount paid as down payment is

20/100 x 5824 = 1164.8

total amount paid as loan = total cost - down payment = 5824 - 1164.8

total amount paid as loan = $4659.2

User Mzedeler
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2.6k points