You have decided to purchase a car for $25,625. The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months. The sales tax in your city is 7.5%, and the license and title charges are $175.13. What is the total purchase price of the car including tax, license, and title? Round your answer to the nearest cent.
Sales tax is 7.5% of $25,625, which is $1,921.875. Add the car price, tax, and $175.13 in license and title charges: $25,625 + $1,921.875 + $175.13 = $27,722.005, or $27,722.01 rounded to the nearest cent. The correct choice is $27,722.01.
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