Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment?
a. $446.74
b. $459.42
c. $461.41
d. $507.09

After adding fees and taxes you will be left with a cost of $19,148.86. after that you will need to take out her down payment. Then you can use a loan interest calculator and input your information i used www.calculator.net after you input all your information you will find that the answer is B.$459.42

Answer Link

psm22415 psm22415 · Answer 2 · 2022-02-02T16:45:04+01:00

Her monthly payment is $459.42.

Given

List price of Cassandra's car = $16,870

Sales tax (7.8%) = $1,315.86 ($16,870 x 7.8%)

Vehicle Registration Fee = $895

Documentation Fee = $68

Total costs = $19,148.86

Down payment = $1,800

Amount financed after the down payment = $17,348.86 ($19,148.86 - $1,800)

What is our down payment?

A part of the full price paid at the time of purchase or delivery with the balance to be paid later broadly :

Monthly payment:= 48 (4 years x 12 months)

I/Y (Interest per year) = 12.3%

PV (Present Value) = $15,070

FV (Future Value) = $0

Monthly Payment = $459.42

Sum of all periodic payments = $22,052.24

Total Interest = $4,703.38

Hence, her monthly payment is $459.42.

To know more about Down payment click the link given below.

https://brainly.com/question/2804993