Question

Carrie purchased a motorcycle for $7,948. she made a down payment of $3,625. she applied for a four-year installment loan with an interest rate of 12.2%. what is the total cost of the motorcycle after four years?

Answer 1

Since you paid $3,625,you are paying $4323 in four years.
The easy way to do this is 4343(1+0.122)^4
you're paying 1212.6 per year which means you're paying $4850.4 so the total cost is $8475.4

Answer 2

Price of the motorcycle after 4 year will be $10057.62

Explanation:

Carrie purchased a motorcycle for $7948

She made a down payment of $3625

So the amount which she has to pay in installment = $7948-43625 = $4323

She pays the installment for 4 years

So time t = 4 years

Rate of interest r = 12.2 %

We know that interest
`=(principle\ amount* rate* time)/(100)=(4323* 12.2* 4)/(100)=2109.62`

Total amount = price of motorcycle + interest = $7948+$2109.62 = $10057.62