You have decided to purchase a car for $22,346.16. The credit union requires a 10% down payment and will finance the balance with a 5.4% annual interest loan for 36 months. The sales tax in your city is 7.6%, and the license and title

charges are $125.13. Determine the amount that the credit union will finance you for. Round your answer to the nearest

cent.

a $24,179.10

c. $21,761.20

b. $24,169.60

d. $21,752.64

(b)

Step-by-step explanation:

Given:  Cost of car is

            Sales tax is    

             The license and title  charges are

To find: The amount that the credit union will finance.

Solution:

We have,  

Cost of car  

Sales tax is of

Therefore,  

sales tax

The license and title  charges

Now, the amount that the credit union will finance is

cost of carsales taxthe license and title  charges

Hence, the amount that the credit union will finance is .

So, (b) is correct.

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