Ferris purchased a car for $16,720. He made a down payment of $1,940. He applied for a five-year installment loan with an interest rate of 8.1%. What is the total cost of the car after five years?

Question

anonymous · Answer

anyone

anonymous · Answer

compount interest formula:
$$A=P\left(1+{r\over100}\right)^n$$
A = amount after "n" years = to find
P = amount for interest = 16720-1940
r = APR = 8.1
n = number of years = 5

anonymous · Answer

I got $19,963.40

anonymous · Answer

nope. check again.

anonymous · Answer

$18,023.40

anonymous · Answer

nope
$$A=(16720-1940)\times\left(1+\frac{8.1}{100}\right)^5$$

anonymous · Answer

15,977.18 is that right

anonymous · Answer

what is the last option there?

anonymous · Answer

$$A=14780\times(1.081)^5$$

anonymous · Answer

$18,074.32 i got this answer first but i didnt know if it was right.

anonymous · Answer

nope
the answer turn out to be $21817.4

anonymous · Answer

thta's not one of the answer choices

anonymous · Answer

then post the complete question. is the interest compunded annually? bi...

anonymous · Answer

Ferris purchased a car for $16,720. He made a down payment of $1,940. He applied for a five-year installment loan with an interest rate of 8.1%. What is the total cost of the car after five years?

anonymous · Answer

it is the full question

ghostfire · Answer

I think it needs to add the down payment portion too.
$21817.4+$1940=$23757.4