Answer: $38,825.
Explanation:
To calculate the total cost of the car, we need to consider the cost of the car itself, the tax and license fees, and the cost of the loan.
Cost of the car = $18,000
Tax and license fees = $1,200
Total cost of the car = $18,000 + $1,200 = $19,200
To calculate the cost of the loan, we can use the formula for monthly loan payments:
P = (r * A) / (1 - (1 + r)^(-n))
where:
P = monthly payment
r = monthly interest rate (7.25% / 12 = 0.00604166667)
A = loan amount ($17,000)
n = total number of payments (4 years * 12 months/year = 48 payments)
Plugging in the numbers, we get:
P = (0.00604166667 * $17,000) / (1 - (1 + 0.00604166667)^(-48))
P = $408.74 (rounded to the nearest cent)
The total cost of the loan is simply the monthly payment multiplied by the total number of payments:
Total cost of the loan = $408.74 * 48 = $19,624.52 (rounded to the nearest cent)
Adding the total cost of the car to the total cost of the loan, we get:
Total cost = $19,200 + $19,624.52 = $38,824.52
Therefore, the total cost of the car, to the nearest dollar, is $38,825.