The price of the used car is $23,500. Sales tax on this car is 7% of the price o

Question

The price of the used car is $23,500. Sales tax on this car is 7% of the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down payment of $1,200. You intend to finance the car for 48 months and your car payment will be $551.44 per month. Your essay should in include the following information 1. Calculate and discuss the amount financed, the installment price of the new car, and the finance charges you will pay over the life of the loan. 2. Compare and contrast the advantage of paying cash and financing the vehicle over a shorter period of time, as well as, the impact of finding lower interest rates. 3. Research and discuss the advantages of having good credit versus poor credit when qualifying for a loan. Discuss the implications of your credit score on the interest rates you may qualify for.

Explanation / Answer

price of the used car is $ 23,500 . the sales tax is 7% of $ 23,500 , which is
7/100* 23,500 and this is equal to $ 16,45 .
the total cost of the car including the sales tax is $ 25,145.
the total amound that is being financed is 25145 - 1200 = $ 23,945
the installemet price of the car is = $ 551.44 per month

total amount paid in 48 months = 48*551.44 = $ 26, 469
extra amount paid paid is = 26469 - 23945 = $ 2524
                                                                                                                                        

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