# You have decided to purchase a car for $19,000. The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months. The sales tax in your city is 8.3%, and the license and title charges are $75. What is the total purchase price of the car including tax, license, and title?

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Answer:Total purchase price = $26,439.72Step-by-step explanation:Given is the Price of Car = $19,000.Given is the Sales Tax = 8.3% of car's price = 8.3% of 19000 = $1,577. Given is the License and title charges = $75.Total cost of car = Car's price + Sales tax + License and title charges.Total cost of car = 19000 + 1577 + 75 = $20,652The company requires 10% down payment, so down payment = 10% of car's price = 10% of 19000 = $1,900.Loan Principal = Total cost of car - Down paymentLoan Principal, P = 20652 - 1900 = $18,752.Given is the interest rate, R = 9% APR = 0.09/12 = 0.0075Given is the loan time period, T = 36 months.So, Total amount paid for loan, A = 18752*(1+0.0075)³⁶A = 18752*(1.0075)³⁶ = 18752*(1.308645371) = $24,539.72Total purchase price = Down payment + Total amount paid for loan.Total purchase price = 1900 + 24539.72Total purchase price = $26,439.72