Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

3. Monthly Car Payment: The Mills' purchased a new car for $29,575. The tax on thevehicle was 3.25% and title and license fees were $210. They were able to get a trade-in of$4,500 on Jackson's old car. If they financed the remainder at 5.25% for 5 years, what wasthe monthly payment on the car loan?Select the correct answer for each dropdown menu.A. Total Purchase Price (including taxes and fees): [Select]B. Loan Amount (with down payment): (Select]C. Interest on Loan: [Select]D. Amount to be repaid: [Select]Select)E. Amount of each payment:

Sagot :

From the question;

Purchase price = $29,575

Tax = 3.25%

License fee = $210

A. We are to calculate the total purchase price

[tex]\begin{gathered} \text{Total Purchase price = \$29,575 + 3.25\% 0f \$29,575 + \$210} \\ \text{Total purchase price = \$29,575 + \$961.19 + \$210} \\ \text{Total purchase price = \$30,746.19} \end{gathered}[/tex]

Therefore,

Total Purchase price = $30,746.19

B. Loan amount

[tex]\text{Loan amount = Total purchase - trade-in payment}[/tex]

Trade-in payment = $4,500

Therefore,

[tex]\begin{gathered} \text{Loan amount = \$30,746.19 - \$4,500} \\ \text{Loan amount = \$26,246.19} \end{gathered}[/tex]

Therefore,

Loan Amount = $26,246.19

C. Interest on loan

[tex]\text{Interest = }\frac{P\times R\times T}{100}[/tex]

From the question

P = Loan amount =$26,246.19

R = 5.25

T = 5years

Therefore,

[tex]\begin{gathered} \text{Interest = }\frac{\text{\$26,264.19 }\times\text{5.25 }\times5}{100} \\ \text{Interest =}\frac{\text{\$688,957.5}}{100} \\ \text{Interest = \$6,889.6} \end{gathered}[/tex]

Therefore,

Interest on loan = $6,889.6

D. Amount to be repaid

[tex]\begin{gathered} \text{Amount = Loan amount + Interest} \\ \text{Amount = \$26,246.19 + \$6,889.6} \\ \text{Amount = \$33,135.8} \end{gathered}[/tex]

Therefore,

Amount to be repaid = $33,135.8

E. Amount of each repayment

since the repayment is on a monthly basis

[tex]\begin{gathered} \text{The loan is for 5 years} \\ \text{Hence, } \\ T\text{otal months = 5 }\times12\text{ months} \\ T\text{otal months = 60 months} \end{gathered}[/tex]

Therefore,

[tex]\begin{gathered} \text{Amount of each payment = }\frac{Amount\text{ to be repaid }}{Total\text{ months}} \\ \text{Amount of each payment = }\frac{\text{\$33,135.8}}{60} \\ \text{Amount of each payment = \$552.3} \end{gathered}[/tex]

Therefore,

Amount of each payment = $552.3

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.