Riley is buying a new car. The sticker price on the car is $16,999. The bank has offered
him a loan that has 3.9% APR for 4 years. If Riley is required to pay a 10% down payment
and sales tax in Texas is 6.25%, how much money will Riley pay over the life of the loan?
$18,765
$19,535
O $19,397
$16,999
Next

  $19,389

Step-by-step explanation:

The amount Riley is being charged for the car is ...

  (sticker price) + tax = 16,999 + 0.0625·16,999 = 16,999 +1062.44 = 18061.44

The amount he is paying as a down payment is 10& of this value:

  down payment = 10% · $18,061.44 = $1,806.14

Then the amount being financed is ...

  financed amount = purchase price - down payment

  = $18,061.44 -1,806.14 = $16,255.30

__

The amortization formula is good for finding the monthly payment.

  A = P(r/12)/(1 -(1 +r/12)^(-12t))

where P is the amount financed at rate r for t years.

  A = $16,255.30(0.039/12)/(1 -(1 +0.039/12)^(-12·4)) = $366.30

The total Riley will pay is the sum of the monthly payments and the initial down payment:

  total paid = 48·$366.30 +1,806.14 = $19,388.54 ≈ $19,389

The closest offered choice is $19,397.

Comment on answer choices

We suspect the answer key computation involved some rounding somewhere.

2.

according to newton’s cannonball model, what happens if the cannonball's velocity is enough to overpower the pull of earth’s gravitystep-by-step explanation:

answer: r there any options?

step-by-step explanation: