A student is buying a new car. The car's price is $26,500, the sales tax is 8%, and the title, license and registration fee is $450 to be paid in cash. The dealer offers to finance 90% of the car's total price for 48 months at a nominal interest rate of 9% per year, compounded monthly. The monthly payment is i) $664.15 $651.46 $561.64 $541.66

A student is buying a new car. The car's price is $26,500, the sales tax is 8%, and the title, license and registration fee is $450 to be paid in cash. The dealer offers to finance 90% of the car's total price for 48 months at a nominal interest rate of 9% per year, compounded monthly. The monthly payment is i) $664.15 $651.46 $561.64 $541.66

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

8) A student is buying a new car. The car's price is $26,500, the sales tax is 8%, and the
title, license and registration fee is $450 to be paid in cash. The dealer offers to finance
90% of the car's total price for 48 months at a nominal interest rate of 9% per year,
compounded monthly. The monthly payment is
i)
S664.15
ii)
$651.46
iii)
S561.64
iv) S541.66

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