Question
Asked Sep 25, 2019
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You want to buy a $33,000 car. You can make a 10% down payment, and will finance the balance with a 4% interest rate for 60 months (5 years). What will your monthly payments be?

 

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Expert Answer

Step 1

The purchasing price of the car is $33,000. I have paid 10% payment on cash. Then the remaining amount I have to pay:

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$3,3000 x 10% = $3,300 The remaining amount is $33,000-$3,300 $27,000

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Step 2

Now, the initial amount is $27,000 and time period is 5 years and rate of interest is 4% then total amount I have to pay after 5 years is:

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simple interest= PIinciple amount xrate x time 100 27,000 x4x5 100 -270 x 4 x 5 = $5,400

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Step 3

Now, amount...

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Amount-principle amount+simple interest =$27,000+$5400 -$32,400

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Math

Advanced Math