Answer:
20. $3,600
21. $32,400
22. $626.38
23. $41,182.80
Step-by-step explanation:
20.
The down payment is 10% of the purchase price, so is ...
amount down = 10% × $36,000 = 0.10 × $36,000
amount down = $3,600
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21.
The amount financed is the remaining amount due:
$36,000 -$3,600 = $32,400
__
22.
The monthly payment is found from the amortization formula.
A = P(i/12)/(1 -(1 +i/12)^(-12t)) . . . . P is the amount financed at rate r for t years
A = $32,400(0.06/12)/(1 -(1 +0.06/12)^(-12×5))
A = $32,400(0.005)/(1 -(1.005^-60)) ≈ $626.38
Samantha's monthly payment will be $626.38.
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23.
The total amount paid is ...
total paid = down payment + monthly payment × number of months
total paid = $3,600 +626.38×60 = $41,182.80
The total amount Samantha will pay is $41,182.80.
