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Elementary Technical Mathematics

12th Edition
Dale Ewen
ISBN: 9781337630580

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BuyFindarrow_forward

Elementary Technical Mathematics

12th Edition
Dale Ewen
ISBN: 9781337630580
Textbook Problem

Denny purchased a new truck for $45,500. He received a rebate of $4500 and paid a sales tax of 6.5% after the rebate. He paid a down payment of 20% and obtained a loan for the balance at 7.25% APR over a 5-year period. How much is the monthly payment?

To determine

To calculate: The monthly payment of truck if he has paid 20% as down payment and take a loan for the balance amount with 7.25% interest rate for 5 years where the cost of the truck is $45,500 and a rebate of $4500. Also, after the rebate he paid a sales tax of 6.5%.

Explanation

Given information:

The cost of the truck is $45,500 and a rebate of $4500. Also, after the rebate he paid a sales tax of 6.5%.

He has paid 20% as down payment and take a loan for the balance amount with 7.25% interest rate for 5 years.

Formula used:

Amortization formula is,

A=P(i(1+i)n(1+i)n1)

Where, A is the amount paid periodically, P is the principal amount, i is the rate of interest as an annual percentage rate and n is the total number of payments.

Calculation:

The cost of the truck is $45,500 and a rebate of $4500. Therefore, reduced cost price of truck is,

$45,500$4,500=$41,000

After the rebate he paid a sales tax of 6.5%. Therefore, the amount left after rebate is,

6.5% of 41,000 =6.5100×41,000=$2,665

Thus, the total cost of the truck is,

$41,000+$2,665=$43,665

Now, he has paid 20% as down payment. Therefore, amount of down payment is,

20% of $43,665=20100×43,665=$8,733

Therefore, remaining balance for loan is,

$43,665$8,733=$34,932

As he take a loan for the balance amount with 7.25% interest rate for 5 years and the payment is done monthly

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P-73ESect-1.12 P-74ESect-1.13 P-1ESect-1.13 P-2ESect-1.13 P-3ESect-1.13 P-4ESect-1.13 P-5ESect-1.13 P-6ESect-1.13 P-7ESect-1.13 P-8ESect-1.13 P-9ESect-1.13 P-10ESect-1.13 P-11ESect-1.13 P-12ESect-1.13 P-13ESect-1.13 P-14ESect-1.13 P-15ESect-1.13 P-16ESect-1.13 P-17ESect-1.13 P-18ESect-1.13 P-19ESect-1.13 P-20ESect-1.13 P-21ESect-1.13 P-22ESect-1.13 P-23ESect-1.13 P-24ESect-1.13 P-25ESect-1.13 P-26ESect-1.13 P-27ESect-1.13 P-28ESect-1.13 P-29ESect-1.13 P-30ESect-1.13 P-31ESect-1.13 P-32ESect-1.13 P-33ESect-1.13 P-34ESect-1.13 P-35ESect-1.13 P-36ESect-1.13 P-37ESect-1.13 P-38ESect-1.13 P-39ESect-1.13 P-40ESect-1.13 P-41ESect-1.13 P-42ESect-1.13 P-43ESect-1.13 P-44ESect-1.13 P-45ESect-1.13 P-46ESect-1.13 P-47ESect-1.13 P-48ESect-1.13 P-49ESect-1.13 P-50ESect-1.13 P-51ESect-1.13 P-52ESect-1.13 P-53ESect-1.13 P-54ESect-1.13 P-55ESect-1.13 P-56ESect-1.13 P-57ESect-1.13 P-58ESect-1.13 P-59ESect-1.13 P-60ESect-1.13 P-61ESect-1.13 P-62ESect-1.13 P-63ESect-1.13 P-64ESect-1.13 P-65ESect-1.13 P-66ESect-1.13 P-67ESect-1.13 P-68ESect-1.13 P-69ESect-1.13 P-70ESect-1.13 P-71ESect-1.13 P-72ESect-1.13 P-73ESect-1.13 P-74ESect-1.13 P-75ESect-1.13 P-76ESect-1.13 P-77ESect-1.13 P-78ESect-1.13 P-79ESect-1.13 P-80ESect-1.13 P-81ESect-1.14 P-1ESect-1.14 P-2ESect-1.14 P-3ESect-1.14 P-4ESect-1.14 P-5ESect-1.14 P-6ESect-1.14 P-7ESect-1.14 P-8ESect-1.14 P-9ESect-1.14 P-10ESect-1.14 P-11ESect-1.14 P-12ESect-1.14 P-13ESect-1.14 P-14ESect-1.14 P-15ESect-1.14 P-16ESect-1.14 P-17ESect-1.14 P-18ESect-1.14 P-19ESect-1.14 P-20ESect-1.14 P-21ESect-1.14 P-22ESect-1.14 P-23ESect-1.14 P-24ESect-1.14 P-25ESect-1.14 P-26ESect-1.14 P-27ESect-1.14 P-28ESect-1.14 P-29ESect-1.14 P-30ESect-1.14 P-31ESect-1.14 P-32ESect-1.14 P-33ESect-1.14 P-34ESect-1.14 P-35ESect-1.14 P-36ESect-1.14 P-37ESect-1.14 P-38ESect-1.14 P-39ESect-1.14 P-40ESect-1.14 P-41ESect-1.14 P-42ESect-1.14 P-43ESect-1.14 P-44ESect-1.14 P-45ESect-1.14 P-46ESect-1.14 P-47ESect-1.14 P-48ESect-1.14 P-49ESect-1.14 P-50ESect-1.14 P-51ESect-1.14 P-52ESect-1.14 P-53ESect-1.14 P-54ESect-1.14 P-55ESect-1.14 P-56ESect-1.14 P-57ESect-1.14 P-58ESect-1.14 P-59ESect-1.14 P-60ESect-1.15 P-1ESect-1.15 P-2ESect-1.15 P-3ESect-1.15 P-4ESect-1.15 P-5ESect-1.15 P-6ESect-1.15 P-7ESect-1.15 P-8ESect-1.15 P-9ESect-1.15 P-10ESect-1.15 P-11ESect-1.15 P-12ESect-1.15 P-13ESect-1.15 P-14ESect-1.15 P-15ESect-1.15 P-16ESect-1.15 P-17ESect-1.15 P-18ESect-1.15 P-19ESect-1.15 P-20ESect-1.15 P-21ESect-1.15 P-22ESect-1.16 P-1ESect-1.16 P-2ESect-1.16 P-3ESect-1.16 P-4ESect-1.16 P-5ESect-1.16 P-6ESect-1.16 P-7ESect-1.16 P-8ESect-1.16 P-9ESect-1.16 P-10ESect-1.16 P-11ESect-1.16 P-12ESect-1.16 P-13ESect-1.16 P-14ESect-1.16 P-15ESect-1.16 P-16ESect-1.16 P-17ESect-1.16 P-18ESect-1.16 P-19ESect-1.16 P-20ESect-1.16 P-21ESect-1.16 P-22ESect-1.16 P-23ESect-1.16 P-24ESect-1.16 P-25ESect-1.16 P-26ESect-1.16 P-27ESect-1.16 P-28ESect-1.16 P-1RSect-1.16 P-2RSect-1.16 P-3RSect-1.16 P-4RSect-1.16 P-5RSect-1.16 P-6RSect-1.16 P-7RSect-1.16 P-8RSect-1.16 P-9RSect-1.16 P-10RSect-1.16 P-11RSect-1.16 P-12RSect-1.16 P-13RSect-1.16 P-14RSect-1.16 P-15RSect-1.16 P-16RSect-1.16 P-17RSect-1.16 P-18RSect-1.16 P-19RSect-1.16 P-20RCh-1 P-1RCh-1 P-2RCh-1 P-3RCh-1 P-4RCh-1 P-5RCh-1 P-6RCh-1 P-7RCh-1 P-8RCh-1 P-9RCh-1 P-10RCh-1 P-11RCh-1 P-12RCh-1 P-13RCh-1 P-14RCh-1 P-15RCh-1 P-16RCh-1 P-17RCh-1 P-18RCh-1 P-19RCh-1 P-20RCh-1 P-21RCh-1 P-22RCh-1 P-23RCh-1 P-24RCh-1 P-25RCh-1 P-26RCh-1 P-27RCh-1 P-28RCh-1 P-29RCh-1 P-30RCh-1 P-31RCh-1 P-32RCh-1 P-33RCh-1 P-34RCh-1 P-35RCh-1 P-36RCh-1 P-37RCh-1 P-38RCh-1 P-39RCh-1 P-40RCh-1 P-41RCh-1 P-42RCh-1 P-43RCh-1 P-44RCh-1 P-45RCh-1 P-46RCh-1 P-47RCh-1 P-48RCh-1 P-49RCh-1 P-50RCh-1 P-51RCh-1 P-52RCh-1 P-53RCh-1 P-54RCh-1 P-55RCh-1 P-56RCh-1 P-57RCh-1 P-58RCh-1 P-59RCh-1 P-60RCh-1 P-61RCh-1 P-62RCh-1 P-63RCh-1 P-64RCh-1 P-65RCh-1 P-66RCh-1 P-67RCh-1 P-68RCh-1 P-1TCh-1 P-2TCh-1 P-3TCh-1 P-4TCh-1 P-5TCh-1 P-6TCh-1 P-7TCh-1 P-8TCh-1 P-9TCh-1 P-10TCh-1 P-11TCh-1 P-12TCh-1 P-13TCh-1 P-14TCh-1 P-15TCh-1 P-16TCh-1 P-17TCh-1 P-18TCh-1 P-19TCh-1 P-20TCh-1 P-21TCh-1 P-22TCh-1 P-23TCh-1 P-24TCh-1 P-25TCh-1 P-26TCh-1 P-27TCh-1 P-28TCh-1 P-29TCh-1 P-30TCh-1 P-31TCh-1 P-32TCh-1 P-33TCh-1 P-34TCh-1 P-35TCh-1 P-36TCh-1 P-37TCh-1 P-38TCh-1 P-39TCh-1 P-40TCh-1 P-41TCh-1 P-42TCh-1 P-43TCh-1 P-44T

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