Question

Eduardo purchased a car for $18,500 with 6.5% sales tax, a freight charge of $450, a registration fee of $155, and an ownership fee of $45. Eduardo made a down payment

of $2.500, the total amount financed would be:
$18.056.50
$17.852.50
$17.398.75
$18.235.75
None of these choices are correct

Answer 1

Answer: $17,852.50

Explanation:

First find the total cost of the car including the various charges:

Sales tax = 18,500 * 6.5%

= $1,202.50

Total cost = Purchase price + sales tax + Freight charge + Registration fee + Ownership fee

= 18,500 + 1,202.50 + 450 + 155 + 45

= $20,352.50

Subtract the down payment to find out the amount that will be financed:

= 20,352.5 - 2,500

= $17,852.50