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21 December, 15:30

You (or your parents) purchase a used car for $15,867.00 plus 5.25% sales tax. The down payment is 10% of the total cost and you (or your parents) have an excellent credit rating. Use the table below to determine the principal balance at the start of the loan.

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  1. 21 December, 15:51
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    Total cost = $15,867 + $ (15,867 x 0.0525) = $15,867.00 + $833.02 = $16,700.02

    10% of the total cost = 0.1 x $16,700.02 = $1,670.00

    Principal balance = $16,700.02 - $1,670.00 = $15,030.02
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