Big ed’s car dealership is running a special on 2008 trucks. big ed offers financing at a rate of 6.71% on a loan with a term of 36 months, but he requires the customer to make a down payment of 15% of the cost of the vehicle. you are interested in a car crusher truck that costs $25,230. not including the down payment, how much will you pay over the lifetime of the loan? a. $27,924.84 c. $23,735.88 b. $25,789.32 d. $21,445.50 select the best answer from the choices provided a b c d
25,230 x .15= 3,784.50
25,230- 3,784.50= 21,535
598.20833 x 1.0671= 638.348109
638.348109 x 36= 22,980.5319
Letter C $23,735.84.The result varies a few dollars, because during the solution an adjustment was made to the decimals.
1. Define the price of the vehicle you are going to buy with the dealer or seller
N= 36 months
Down payment=15% of the cost of the vehicle= (25230*0.15)=$3784.50
2. Apply the amortization formula to determine the monthly payments. With this taxation, you will determine the payments applied to the principal and the copper of interest.
A= amortization or monthly payments.
N= the total number of months
a.Calculate the monthly interest rate. The annual interest rate is 6.71% percent. Divide it by 12 to get the monthly interest rate. The monthly interest rate is 0.5592 percent (6.71/12 = 0.5592)
Total of the payment= 658.90*36=23720.40
the answer would be the last one (constat) she stays at the same rat every two mintues it goes up by 0.4
2 is the final ! : )