4
practice testMultiple Choice

Practice Test

Question 4 • Financial Algebra/Mathematics

You have decided to purchase a car for 22 dollars comma 346 point 1 6 The sales tax in your city is 7 point 6 percent , and the license and title charges are 125 point 1 3 dollars The credit union requires a 10 percent down payment on the total purchase price (including tax and fees) and will finance the remaining balance at 5 point 4 percent annual interest for 36 months. Determine the amount the credit union will finance. Round your answer to the nearest cent.

Answer
A
24 dollars comma 169 point 6 0
B
24 dollars comma 179 point 1 0
C
21 dollars comma 761 point 2 0
D
21 dollars comma 752 point 6 4

Explanation

The sales tax is $22,346.16 × 0.076 = $1,698.31. Add the car price, tax, and $125.13 in fees to get a total purchase price of $24,169.60. The credit union finances 90% after the 10% down payment: $24,169.60 × 0.90 = $21,752.64. The correct choice is $21,752.64.

AI-written and checked against the verified answer.

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