Question 22 • FowU - Financial Math - B
First find the car’s total cost: sales tax is $22,499 × 0.0796 = $1,790.92, so the price plus tax and fees is $22,499 + $1,790.92 + $2,138 + $262 = $26,689.92. At a monthly rate of 10.27% ÷ 12 for 36 months, payments of $773.89 have a present value of about $23,889.80, which is the amount financed. Subtracting this from the total cost gives a down payment of about $2,800.12, so the best answer is $2,800.
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