Answer:
Total purchase price = $26,439.72
Step-by-step explanation:
Given is the Price of Car = $19,000.
Given is the Sales Tax = 8.3% of car's price = 8.3% of 19000 = $1,577.
Given is the License and title charges = $75.
Total cost of car = Car's price + Sales tax + License and title charges.
Total cost of car = 19000 + 1577 + 75 = $20,652
The company requires 10% down payment, so down payment = 10% of car's price = 10% of 19000 = $1,900.
Loan Principal = Total cost of car - Down payment
Loan Principal, P = 20652 - 1900 = $18,752.
Given is the interest rate, R = 9% APR = 0.09/12 = 0.0075
Given is the loan time period, T = 36 months.
So, Total amount paid for loan, A = 18752*(1+0.0075)³⁶
A = 18752*(1.0075)³⁶ = 18752*(1.308645371) = $24,539.72
Total purchase price = Down payment + Total amount paid for loan.
Total purchase price = 1900 + 24539.72
Total purchase price = $26,439.72
