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22.) You are buying a car online to be delivered to your house. The purchase price is $18,500. You decide to make adown payment of $4,000 and borrow the rest with a loan from your credit union. The loan you accept is at 3.2%APR, compounded quarterly for 4 years.a.) What total amount do you pay for the car?b.) How much interest do you pay?c.) What will be your monthly payments?

Respuesta :

Explanation

From the above, we can see that the individual has to borrow

[tex]18500-4000=14500[/tex]

Since the loan you accept is at 3.2% APR, compounded quarterly for 4 years. Therefore, we w ill have;

[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ A=14500(1+\frac{0.032}{4})^{4\times4} \\ A=16471.62763 \end{gathered}[/tex]

Therefore, the total amount he pays for the car.

Part A

[tex]4000+16471.63=20471.63[/tex]

Answer: 20471.63

Part B: Interest

Answer:

[tex]20471.63-18500=1971.63[/tex]

Answer: 1971.63

Part C: Monthly Payments

[tex]\frac{16471.63}{4\times12}=343.158[/tex]

Answer: 343.16