Question

Karlo has $7,300 saved for a down payment towards the $26,700 car he wants to buy. He needs to have adown payment of at least 40% in order to get the lowest interest rate. How much more money would he need tosave?

Answer 1

The Solution:

Given:

The cost of car Karlo wants to buy is $26,700.

Karlo has saved = $7,300

We are required to find how much Karlo need to save more for the car.

Step 1:

Down payment of 40% of the total cost of the car is:

$Down\text{ payment amount}=\frac{40}{100}\times26700=40\times267=\text{\ }10680$

Step 2:

Subtract $10680 from $26700.

$Amount\text{ to save more }=26700-10680=\text{\ }16,020$

Therefore, the correct answer is $16,020.