An installment contract for the purchase of a car requires payments of $328.19 at the end of each month for 4.5 years. Interest is 8% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost? (a) The amount financed is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The interest is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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19 \times \left(1 - \frac{1}{(1 + \frac{0.08}{12})^{4.5 \times 12} \div \frac{0.08}{12}}\right)\] Show more…
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