we have the following components for an automobile loan: purchase price: $19,700; sales tax: 4.5%; license…

we have the following components for an automobile loan: purchase price: $19,700; sales tax: 4.5%; license and title fees: $375; down - payment: $3200; payments: $392.75 for 72 months. part: 0 / 4 part 1 of 4 find the total cost of the car. the total cost of the car is $

we have the following components for an automobile loan: purchase price: $19,700; sales tax: 4.5%; license and title fees: $375; down - payment: $3200; payments: $392.75 for 72 months. part: 0 / 4 part 1 of 4 find the total cost of the car. the total cost of the car is $

Answer

Explanation:

Step1: Calculate sales tax amount

Sales tax amount = Purchase price × Sales - tax rate. The purchase price is $19700 and the sales - tax rate is 4.5% or 0.045. So, sales tax amount = $19700×0.045 = $886.5$.

Step2: Calculate total amount to be financed

Total amount to be financed = Purchase price+Sales tax + License and title fees - Down payment. Purchase price is $19700, sales tax is $886.5, license and title fees are $375 and down payment is $3200. So, total amount to be financed = $19700 + 886.5+375 - 3200=$17761.5$.

Step3: Calculate total of monthly payments

Total of monthly payments = Monthly payment amount×Number of months. Monthly payment is $392.75 and number of months is 72. So, total of monthly payments = $392.75×72 = $28278$.

Step4: Calculate total cost of the car

Total cost of the car = Total of monthly payments+Down payment. Down payment is $3200 and total of monthly payments is $28278. So, total cost of the car = $28278+3200=$31478$.

Answer:

$31478$