Renee is going to buy a new car that has a list price of $19,675. She will be responsible for $1,420 in vehicle registration fees, $85 in documentation fees, and 8.92% sales tax. She plans to trade in her current car, a 2002 Buick LeSabre in good condition, and finance the rest of the cost over four years at an interest rate of 11.34%, compounded monthly. If the dealer gives Renee 85% of the listed trade-in value for her car, what will her monthly payment be? Round all dollar values to the nearest cent.Buick Cars in Good ConditionModel/Year19981999200020012002Century$929$1,086$1,150$1,488$1,595LeSabre$2,075$2,282$2,690$2,935$3,374Regal$1,676$1,794$2,030$2,214$2,566Riviera$1,291$1,455$1,520$1,814$1,959
The 2002 LeSabre’s listed trade-in value is $3,374, so the dealer’s offer is 0.85 × $3,374 = $2,867.90. Sales tax on the $19,675 car is $1,755.01; adding the $1,420 registration fee and $85 documentation fee, then subtracting the trade-in, gives a financed amount of $20,067.11. With a monthly interest rate of 11.34% ÷ 12 and 48 payments, the loan payment is about $521.96 per month, which is choice A.
AI-written and checked against the verified answer.