Question

4.) Mr. Souders purchased a car priced at $9800. He paid $500 down and

agreed to a monthly payment of $250 per month for 48 months.
Including the down payment, what is the total cost of the car?
Please show your work.

Answer 1

The total cost of the car including the down payment = $12,500

Explanation:

The Original price of the car = $9800

The amount paid for down payment = $500

Also, the monthly payment amount = $250

Now, the number of months, the amount is paid = 48 months

So, the TOTAL amount paid in 48 months

= 48 x ( Amount paid each month) = 48 x ( $250)

= $12,000

So, the TOTAL PRICE of CAR paid = Total amount paid in 48 months + The amount paid for down payment

= $12,000 + $500

= $12,500

Hence, the total cost of the car including the down payment = $12,500