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?

Question

Johnny Nichols

Mathematics

4 August, 18:50

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?

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Adrianna Valenzuela · Answer 1

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