Valerie is going to purchase a new car. The car she wants has a list price of $32,495. Valerie is planning to make a

down payment of $1,877. Furthermore, she plans to trade in her current car, which is a 2006 Hyundai Sonata in good

condition. She will finance the rest of the cost by making monthly payments over five years. She can finance the cost

at a rate of 8.64%, compounded monthly. She will also have to pay 8.23% sales tax, a $2,243 vehicle registration fee,

and a $314 documentation fee. If the dealer gives Valerie 87.5% of the trade-in price on her car, listed below,

approximately how much will Valerie pay in total for her new car? (Round all dollar values to the nearest cent, and

consider the trade-in to be a reduction in the amount paid.)

OPEN TOP TO SEE ANSWER!!!!

By using several of the known mathematical formulas, and what is given to us at the very bottom (and top) of the answer, we can see that the correct answer is

$38,821

on e2020

Answer Link

anthougo anthougo · Answer 2 · 2022-02-02T15:30:23+01:00

The total amount that Valerie will pay for her new car is $35,899.87.

Online Finance Calculator

We can use an online finance calculator to compute the total amount that Valerie will pay for her new car as follows:

Data and Calculations:

Auto Price = $32,495

Loan Term = 60 months (12 x 5)

Interest Rate = 8.64%

Down Payment = $1,877

Trade-in Value = $28,433 ($32,495 x 87.5%)

Sales Tax = 8.23%

Title, Registration and Other Fees = $2,557 ($2,243 + $314)

Calculate

Monthly Pay: = $44.98

Total Loan Amount = $2,185.00

Sale Tax = $334.30

Upfront Payment = $4,768.30

Total of 60 Loan Payments = $2,698.57

Total Loan Interest = $513.57

Total Cost (price, interest, tax, fees) = $35,899.87

Thus, the total amount that Valerie will pay for her new car is $35,899.87.

Learn more about financing a car purchase at https://brainly.com/question/20566521