Question

After finding out that the dealer’s cost of a VW was 11.7 % lower than its sticker price of $17,350, Julia visited a local dealership, and was able to negotiate a price that left the dealer with a modest profit margin of 9.5% over the invoice price, and have him agreed to honor a rebate coupon of $250 that she submitted.  The dealer offered to finance 83% of the total cost at an APR of 9 ¼ % so she can pay off the auto loan in 4 years.  Before signing the contract, Julia ordered a $300 optional stereo unit to be installed and other additional accessories at a cost of $80.00.  Title fees, License plate charges, and sale taxes would be paid later at the Registry of Motor Vehicles.  How much would Julia pay per month?

Answer 1