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The cash price for a car was $7640. Gurtaj bought the car on the following terms : A deposit of 20% of the cash price and 36 monthly payments of $191.60 . Calculate the total amount Gurtaj paid.

  • maths -

    According to actuarial math, where interest is considered, he paid $7640, (you cannot simply add "monies" that are in different time slots on a time graph.
    e.g. Making $40,000 in 1985 ≠ $40,000 in 2013

    If you ignore interest the total he paid
    = .2(7640) + 36(191.60) = $8425.60

    A more interesting question would have been to find the interest rate per annum compounded monthly that he was charged.

  • maths -

    Thanks. It helped me for my exam!

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