Question

renee is going to buy a new car that has a list price of \\$19,675. she will be responsible for \\$1,420 in vehicle registration fees, \\$85 in documentation fees, and 8.92\\% sales tax. she plans to trade in her current car, a 2002 buick lesabre in good condition, and finance the rest of the cost over four years at an interest rate of 11.34\\%, compounded monthly. if the dealer gives renee 85\\% of the listed trade-in value for her car, what will her monthly payment be? round all dollar values to the nearest cent.

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$$\begin{tabular}{|l|c|c|c|c|c|} \\hline \\multicolumn{6}{|c|}{\\textbf{buick cars in good condition}} \\\\ \\hline \\textbf{model/year} & \\textbf{1998} & \\textbf{1999} & \\textbf{2000} & \\textbf{2001} & \\textbf{2002} \\\\ \\hline century & \\$929 & \\$1,086 & \\$1,150 & \\$1,488 & \\$1,595 \\\\ \\hline lesabre & \\$2,075 & \\$2,282 & \\$2,690 & \\$2,935 & \\$3,374 \\\\ \\hline regal & \\$1,676 & \\$1,794 & \\$2,030 & \\$2,214 & \\$2,566 \\\\ \\hline riviera & \\$1,291 & \\$1,455 & \\$1,520 & \\$1,814 & \\$1,959 \\\\ \\hline \\end{tabular}$$

a. \\$521.96
b. \\$508.80
c. \\$518.80
d. \\$504.46

Explanation:

Find the trade-in value of the car

Using the Table Reading and Trade-in Valuation knowledge points

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Calculate the total purchase cost before trade-in

Using the Sales Tax Calculation knowledge point

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Determine the total amount to finance

Using the Car Financing knowledge point

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Calculate the monthly payment

Using the Loan Monthly Payment knowledge point

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Answer:

• a. $521.96 (Correct answer)
• b. $508.80
• c. $518.80
• d. $504.46