Lupe made a down payment of $1600 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $240/month for 48 mo. What is the cash price of the car? (Round your answer to the nearest cent.)

Question

Mathematics

Skyla Mcknight

12 June, 14:25

Lupe made a down payment of $1600 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $240/month for 48 mo. What is the cash price of the car? (Round your answer to the nearest cent.)

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Answers (1)

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Joselyn Odom · Answer 1

The cash price of the car is $ 51600

Step-by-step explanation:

Interest = PRT : 100

240 = { (x-1600) * 12% * (48:12) } : 100

240 = { (x-1600) * 0.12 * 4 } : 100

240 = { (x-1600) * 0.48}

100

Cross-multiply 100 with 240 and 0.48 with 240

240 * 100 = (x-1600)

0.48

50,000 = x-1600

x = 50,000 + 1600

x = $51600 the cash price of the car