While buying a new car, Kristen made a down payment of $1,200 and agreed to make month-end payments of $280 for the next 4 years and 7 months. He was charged an interest rate of 3% compounded semi-annually for the entire term. a. What was the purchase price of the car?   Round to the nearest cent b. What was the total amount of interest paid over the term?   Round to the nearest cent

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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While buying a new car, Kristen made a down payment of $1,200 and agreed to make month-end payments of $280 for the next 4 years and 7 months. He was charged an interest rate of 3% compounded semi-annually for the entire term.
a. What was the purchase price of the car?
 
Round to the nearest cent
b. What was the total amount of interest paid over the term?
 
Round to the nearest cent
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