Problema Solution
Jackie realizes she needs a new car. She goes to her local car dealer and chooses her car.
She makes a down payment of $4,000 and finances the rest through the dealer. The
dealer tells her that her monthly payments are $579.85 for 4 years. What is the purchase
price of the car if the dealer will charge her 4.25% per year compounded monthly?
Answer provided by our tutors
the total amount that Jackie will pay is:
4000 + 579.85*4*12 = $31,832.60
let
P = the purchase price of the car
P - 4000 is compounded monthly at 4.25% per year that is
(P - 4000)(1 + 0.0425/12)^(4*12) = 579.85*4*12
(P - 4000)(1 + 0.0425/12)^(48) = 27832.80
(P - 4000)*1.1849 = 27832.80
by solving we find:
P = $27,489.58
click here to see the step by step solution of the equation:
the purchase price of the car is $27,489.58.