Carrie purchased a motorcycle for $7,948. she made a down payment of $3,625. she applied for a four-year installment loan with an interest rate of 12.2%. what is the total cost of the motorcycle after four years?

Since you paid $3,625,you are paying $4323 in four years.
The easy way to do this is 4343(1+0.122)^4
you're paying 1212.6 per year which means you're paying $4850.4 so the total cost is $8475.4

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aristeus aristeus · Answer 2 · 2019-10-22T09:08:22+02:00

Answer:

Price of the motorcycle after 4 year will be $10057.62

Step-by-step explanation:

Carrie purchased a motorcycle for $7948

She made a down payment of $3625

So the amount which she has to pay in installment = $7948-43625 = $4323

She pays the installment for 4 years

So time t = 4 years

Rate of interest r = 12.2 %

We know that interest [tex]=\frac{principle\ amount\times rate\times time}{100}=\frac{4323\times 12.2\times 4}{100}=2109.62[/tex]

Total amount = price of motorcycle + interest = $7948+$2109.62 = $10057.62