Question

Determine the total cost of the automobile after the down payment and finance cost. price of the car: $42,000.00 percent down: 14% finance cost 40 months at $1,100.00

Answer 1

The total cost of the automobile after a 14% down payment and finance cost for 40 months at $1,100.00 per month is $49,880.00.

Step-by-step explanation:

To determine the total cost of the automobile after the down payment and finance cost, follow these steps:

• Calculate the down payment by multiplying the price of the car by the down payment percentage.
• Subtract the down payment from the initial price to find the financed amount.
• Multiply the monthly finance cost by the number of months to get the total finance cost.
• Add the down payment to the total finance cost to find the total cost of the automobile.

Using the given numbers, first calculate the down payment:
Price of the car: $42,000.00
Percent down: 14%
Down payment = 0.14 * $42,000.00 = $5,880.00

Next, subtract the down payment from the price of the car to get the financed amount:
Financed amount = $42,000.00 - $5,880.00 = $36,120.00

Then calculate the total finance cost:
Finance cost = 40 months * $1,100.00/month = $44,000.00

Finally, add the down payment back to get the total cost:
Total cost of the automobile = $5,880.00 (down payment) + $44,000.00 (finance cost) = $49,880.00