You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily. Payments are monthly and made at the end of the month. You will own the car in 3 years. You have a down payment of $1700. Calculate the total amount paid for the car if purchased and financed with monthly payments for the length of your financing loan.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily. Payments are monthly and made at the end of the month. You will own the car in 3 years. You have a down payment of $1700. Calculate the total amount paid for the car if purchased and financed with monthly payments for the length of your financing loan. (Purchase price = down payment + total of all payments made) Round your answer to two decimal places. PLEASE SHOW STEP BY STEP SOLUTION - NOT IN EXCEL.
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