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If the price of a car is $7,400 with a tax rate of 7%, and the percent of the down payment is 20%, how much will the loan be?

User Blueren
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1 Answer

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First, find the price of the car along with the tax rate.

7% → 0.07

$7400 × 0.07 = $518

$7400 + $518 = $7918.

Next, calculate the downpayment of 20%

20% → 0.2

$7918 × 0.2 = $1583.6

Deduct $1583.6 from the price with tax to get the amount of loan.

$7918 - $1583.6 = $6334.4

Therefore, the amount of loan is $6,334.4.

User Laverne
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