Laura is currently paying off her four-year car financing. When she purchased her car, it had a list price of $19,858. Laura traded in her previous car, a good-condition 2000 Honda Insight, for 85% of the trade-in value listed below, financing the rest of the cost at 9.5% interest, compounded monthly. She also had to pay 9.27% sales tax, a $988 vehicle registration fee, and a $77 documentation fee. However, because Laura wants to pay off her loan more quickly, she makes a total payment of $550 every month. How much extra is she paying monthly? Round all dollar values to the nearest cent.

Question

Mathematics

Keegan

10 October, 11:24

Laura is currently paying off her four-year car financing. When she purchased her car, it had a list price of $19,858. Laura traded in her previous car, a good-condition 2000 Honda Insight, for 85% of the trade-in value listed below, financing the rest of the cost at 9.5% interest, compounded monthly. She also had to pay 9.27% sales tax, a $988 vehicle registration fee, and a $77 documentation fee. However, because Laura wants to pay off her loan more quickly, she makes a total payment of $550 every month. How much extra is she paying monthly? Round all dollar values to the nearest cent.

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Janae Skinner · Answer 1

Total amount $19858.00

85% from Car trade in = $16879.3

Rest cost = $2978.7

Interest 9.5% = $2827.765

Sales tax 9.27% = $2761.2549

Vehicle registration fee = $988

Documentation fee $77.00

Total Charge = rest cost ($2978.7) + Interest ($2827.765) + Sales tax ($2761.2549) + Vehicle registration fee ($988.00) + Documentation fee ($77.00) = $9632.7199

4 year car finance = 48 months payable

Monthly charge = Total charge ($9632.7119) / 48 months = $200.68

Monthly payment: $550.00

Extra payment = Monthly payment ($550.00) - Monthly charge ($200.68) = $349.32