Final answer:
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