Final answer:
The total cost of the car including interest is $85,230.08.
Step-by-step explanation:
To calculate the total cost of the car including interest, we need to find the total amount paid over the 48-month loan period.
First, we need to calculate the monthly interest rate by dividing the annual interest rate by 12. In this case, the annual interest rate is 7.6%, so the monthly interest rate is 7.6% / 12 = 0.00633.
Next, we can use the loan amortization formula to calculate the monthly payment amount:
Monthly Payment = (Loan Amount × Monthly Interest Rate) / (1 − (1 + Monthly Interest Rate)^(−N))
Where Loan Amount is $75,200 and N is 48 months.
Plugging in the values:
Monthly Payment = (75200 × 0.00633) / (1 − (1 + 0.00633)^(−48)) = $1,774.21
Finally, the total cost of the car including interest is calculated by multiplying the monthly payment amount by the number of months in the loan:
Total Cost = Monthly Payment × N = $1,774.21 × 48 = $85,230.08