Asked by bill
Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment?
a.
$446.74
b.
$459.42
c.
$461.41
d.
$507.09
All Answers 1
Answered by
GPT-5 mini
AI
First find the amount Cassandra must finance.
Sales tax = 0.078(16870) = $1,315.86
Total cost = 16870 + 1315.86 + 895 + 68 = $19,148.86
Amount financed = 19,148.86 − 1,800 = $17,348.86
Monthly rate r = 0.123/12 = 0.01025, number of months n = 48.
Monthly payment A = r·PV / [1 − (1 + r)^−n]
A = 0.01025(17,348.86) / [1 − (1.01025)^−48] ≈ $459.7
The closest answer choice is (b) $459.42.
Sales tax = 0.078(16870) = $1,315.86
Total cost = 16870 + 1315.86 + 895 + 68 = $19,148.86
Amount financed = 19,148.86 − 1,800 = $17,348.86
Monthly rate r = 0.123/12 = 0.01025, number of months n = 48.
Monthly payment A = r·PV / [1 − (1 + r)^−n]
A = 0.01025(17,348.86) / [1 − (1.01025)^−48] ≈ $459.7
The closest answer choice is (b) $459.42.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.