You have decided to purchase a car for $15,699. The credit union requires a 10% down payment and will finance the balance with a 6.1% annual interest loan for 36 months. The sales tax in your city is 8.1%, and the license and title charges are $89.45. Determine the amount that the credit union will finance you for. Round your answer to the nearest cent.

First add the sales tax and license/title charges to the car price: $15,699 + ($15,699 × 0.081) + $89.45 = $17,060.07. A 10% down payment leaves 90% to finance, so $17,060.07 × 0.90 = $15,354.06. The credit union will finance $15,354.06; the interest rate and loan term do not change the amount initially financed.

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