Jason wants to buy a $9000 car. He agrees to make a down payment of 20%, and make monthly payments of $201.50 for 60 months. How much will he spend on the car in total?
1 Answer
The total price of the car is $13,890.
Explanation:
The total price of the car is the sum of the down payment and all the monthly payments.
#"Total price = down payment + all monthly payments"#
Down payment: We put down 20% on a $9000 car. This means we pay 20% of the car's $9000 value up front.
What is 20% of $9000?
#color(white)= 20% xx "$9000"#
#=" "0.2" "xx$9000#
#=$1,800#
So the
Monthly payments: We pay $201.50 once a month, and we do it for 60 months. This means all of our monthly payments will be
#color(white)= $201.50 //"month" xx 60 " months"#
#=$201.50 xx 60#
#=$12,090.00#
So the sum of
Total price: The total price we pay is the sum of all the payments we make—i.e. the down payment, and all the monthly payments.
#"Total price " = " down payment + all monthly payments"#
#color(white)("Total price ")=" "$1,800" " +" "$12,090#
And
#color(white)"+ "$color(white)0 1,800#
#ul("+ "$12,090)#
#color(white)"+ "$13,890#
So the total price of the car is $13,890.
