we have the following components for an automobile loan: purchase price: $18,100; sales tax: 5.5%; license…

we have the following components for an automobile loan: purchase price: $18,100; sales tax: 5.5%; license and title fees: $435; down - payment: $3600; payments: $397.75 for 72 months. part 1 of 4 find the total cost of the car. the total cost of the car is $19,530.50. part 2 of 4 find the amount financed. the amount financed is $15,930.50. part 3 of 4 find the total installment price.

we have the following components for an automobile loan: purchase price: $18,100; sales tax: 5.5%; license and title fees: $435; down - payment: $3600; payments: $397.75 for 72 months. part 1 of 4 find the total cost of the car. the total cost of the car is $19,530.50. part 2 of 4 find the amount financed. the amount financed is $15,930.50. part 3 of 4 find the total installment price.

Answer

Explanation:

Step1: Recall the formula for total installment price

It is the sum of the total of monthly - payments and the down - payment.

Step2: Calculate the total of monthly payments

The monthly payment is $397.75 and the number of months is 72. So the total of monthly payments is $397.75×72 = 28638$.

Step3: Add the down - payment

The down - payment is $3600. So the total installment price is $28638 + 3600=32238$.

Answer:

$32238$