Question

The following ad was placed by a used car dealer in town. $2,500 down

$99 for first 36 months
$199 for 36 months.
What is the price of the car if the interest rate is 12% per year?
$9,668
$7,139
$7,168
$11,228

Answer 1

The price of the car is $13,228.

Step-by-step explanation:

To find the price of the car, we need to add up the down payment and the monthly payments for the entire duration of the loan. The down payment is $2,500. The monthly payment for the first 36 months is $99, and for the next 36 months is $199.

First, let's calculate the total amount of the monthly payments. For the first 36 months, the total cost is 36 x $99 = $3,564. For the next 36 months, the total cost is 36 x $199 = $7,164.

Adding the down payment and the total cost of the monthly payments, the price of the car is $2,500 + $3,564 + $7,164 = $13,228.

Answer 2

To find the price of the car, add up the total amount paid over the 36-month period and the down payment. The price of the car is $13,228.

Step-by-step explanation:

To find the price of the car, we need to calculate the total amount paid over the 36-month period. The monthly payment for the first 36 months is $99, and for the remaining 36 months is $199. The down payment is $2,500.

For the first 36 months, the total amount paid is $99/month × 36 months = $3,564.

For the remaining 36 months, the total amount paid is $199/month × 36 months = $7,164.

The total amount paid over the 72-month period is $3,564 + $7,164 + $2,500 = $13,228.

Therefore, the price of the car is $13,228.