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You decide to buy an All-Terrain Vehicle (ATV) for recreational use, which costs $4,299.99 plus an...

You decide to buy an All-Terrain Vehicle (ATV) for recreational use, which costs $4,299.99 plus an 10.5% sales tax. If you intend to pay the car off in 36 months, how much will your total out of pocket be for the ATV? Assume you will be paying an annual interest 9.3% interest compounded quarterly.

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Answer #1

Cost Price = $4299.99 + 10.5% = $4751.5 (rounded off)

Total out of pocket cost = $5458 (rounded off)

Where Interest = Balance Owed x 9.2288% x 1/2

Payment Amount = PV/PVIFA where PV = Loan Amount, PVIFA =

Principal Amount = Payment - Interest

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