9
QuizMultiple Choice

Financing a Car

Question 9 • CARE_24_25_TX-Mathematical Models with Applications B

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg’s financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent. (Note: The sales tax is applied to the full list price of the car as there is no trade-in or discount)

Answer
A
$2,000
B
$2,200
C
$2,500
D
$2,800
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