Math

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Samantha is going to buy a new Dodge Saturn for $20800. After a 5% down-payment the dealership will offer a loan for the remaining value of the car at 3.25% APR for 4 years.

Round all answers to the nearest penny. Use Web Loan Calculator to find some of the answers here.

How much will Samantha have to have for a down-payment?

$

How much money is Samantha going to borrow for the car?

$

How much will Samantha have to pay per month for 4 years?

$
per month

How much will Samantha actually pay for the car?

Don't forget the Down Payment.

$

How much of this last answer is the interest payed on this loan?

$

  • Math -

    a. D.P. = 0.05 * 20,800 = $1,040.

    b. Po = 20,800 - 1040 = $19,760 = Amt. borrowed.

    c. P = Po*r*t/(1-(1+r)^-t).

    r = 0.0325/12 = 0.0027/mo.
    t = 4yrs. * 12mo./yr. = 48 mo.

    P = (19,760*0.0027*48)/(1-1.0027^-48) = $21,034.03.

    21,034.03/48mo. = $438.21/mo.

    d. $21,034.03 + 1040 = $22074.03 = Total cost.

    e. I = P-Po.

  • Math -

    Okay I understand the first two but not the last couple ones from c-e. Im not coming up with the same thing.

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