Question

You are buying an old "go to work" pickup with a price tag of $1,600. You apply a down payment of $200.00. Sales tax is 6.5%. You will have to borrow $1,504 at 8% interest for one year to complete the purchase. What will your full purchase price be with principal, tax and interest.

Answer 1

Full Purchase Price of the Pickup=$1824.32

Explanation:

Price Tag = $1600

• Sales tax (at 6.5%) =(0.065 X 1600) =$104

Total Sales Price = 1600+104=$1704

Down Payment = $200

Principal Borrowed = $1504

Rate=8%

Amount = Principal+Interest

= [TeX] 1504 + Simple \: Interest= 1504 +\frac{1504 X 8 X 1}{100}[/TeX]

=1504+120.32

• Amount =$1624.32

Full Purchase Price of the Pickup =Amount + Down Payment

= 1624.32+200=$1824.32