You (or your parents) purchase a used car for $15,867.00 plus 5.25% sales tax. The down payment is 10% of the total cost and you (or your parents) have an excellent credit rating. What is your principal balance at the start of the loan?

Question

MrMudd183 · Answer

Can you please post the answer choices?

Hoodmemes · Answer

First ya wanna focus on "plus (5.25%) sales tax." u need to divide the plus sales tax by 100.

$$5.25\div100=0.0525$$

Multiply the plus sales tax which is now (0.0525) by the price the car was purchased which is (15,867.00).

$$0.0525\times15,867.00=833.0175$$

Add (833.0175) to the price the car was purchased which is (15,867.00)

$$15,867.00+833.0175=16700.0175$$

Round (16700.0175) by the (Nearest Hundredth),after rounding iit s now (16700.02)

(16700.02) can also be written as (16,700.02)

Divide (down payment is 10% of the total cost ) by 100

$$10\div100=0.1$$

Multiply the (down payment is 10% of the total cost)=(0.1) by (16,700.02)

$$0.1\times16,700.02=1670.002$$

Round (1670.002) by the (Nearest Hundredth),after rounding it is now (1,670)

(1,670) can also be written as (1,670.00)

Subtract (1,670) from (16,700.02)

$$16,700.02 -1,670.00=15030.02$$

(15030.02) can be written as (15,030.02)

So the principal balance at the start of the loan was (15,030.02)