Suppose you negotiate a selling price of 27995 for a Ford Ex

Suppose you negotiate a selling price of $27,995 for a Ford Explorer. You make a down payment of 10% of the selling price and finance the remaining balance for 5 years at an annual interest rate of 7.6%. The sales tax is 7.6% of the selling price, and the license fee is 0.5% of the selling price. Find the monthly payment. (Round your answer to the nearest cent.)

Solution

selling price =$27995

down payment = 10%(selling price)

                          =10/100* 27995 =2799.5

remaining balance= 27995-2799.5

                             =25195.5

sales tax = 7.6%(selling price)

         = 7.6/100* 27995

           =2127.62

license fee =0.5% of selling price

                  =0.5/100*27995

                   = $139.975

total money has to pay =25195.5+2127.62+139.75

                                     = $27463.09

     Total amount =$27463.09

time period = 5 years

Interset rate =7.6%

Interest = PTR/100

             =27463.09*57.6/100

             =10432.1742

total = 27463.09+10432.1742

          = $37895.2695

for 5 years we have 60 months

monthly payment = 37895.2692/60

                              =$631.58