Question

Follow the steps above, and find c, the total of the payments related to financing, and the monthly payment. A customer buys an automobile from you, the salesman. The price of the car, which includes taxes and license, amounts to $5,955.00. The customer wants to finance the car over 48 months after making a $500 down payment. You inform him that the true annual interest rate is 18%.

Answer 1

Therefore total of the payment to financing is = $(5455+3927.6)

= $ 9382.6

And monthly payment =$(9382.6÷48)

=$781.88

Explanation:

Given a customer buys an automobile from the salesman. The price of the car which includes all taxes and licences amounts to $5,955.00. The customer wants to finance the car over 48 months after making a%500 down payment.

Financed amount = $(5,955- 500)

= $5,455

Interest =
`\frac { Prt}{100}` P= $5,455, r = 18 % , t = 48 month =4 year

`= (5455* 18 * 4)/(100)`

=$3927.6

Therefore total of the payment to financing is = $(5455+3927.6)

= $ 9382.6

And monthly payment =$(9382.6÷48)

=$781.88