69.3k views
2 votes
Her monthly payment, if she is considering a three-year loan is $373.47 given the cost of the motorcycle to be $14000 if the tax rate is 6.75%, the total cost plus tax is expressed as: final cost = 14000 (0.0675 * 14000) cost of motorcycle = 14000 945 cost of motorcycle = $14945 if she plans to make a down payment of $1,500 before the sales tax is applied, then; balance = 14945 - 1500 balance = $13,445 if she considers a three-year loan, her monthly payment will be ; monthly payment = 13,445/36 monthly payment = $373.47 hence her monthly payment if she is considering a three-year loan is $373.47

User Nelsonda
by
7.4k points

1 Answer

1 vote

Final answer:

The student demonstrated the application of principles in financial mathematics to calculate monthly loan payments for a motorcycle after considering the total cost with tax and down payment.

Step-by-step explanation:

The calculation of monthly payments for loans based on the principal amount, interest rates, and loan term is a fundamental application of mathematics, specifically in the area of financial mathematics. In the scenario described, the student applies the concept by calculating the final cost of a motorcycle after tax, subtracting the down payment, and then distributing the remaining balance over a three-year loan period to find a monthly payment of $373.47. Examples provided also discuss other loan scenarios, such as the total cost of a million-dollar house loan over 30 years, the effect of larger payments on time and total cost of a loan, and determining the maximum loan one can afford based on annual payments and interest rates.

User Second Son
by
8.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.