Problem
Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology
5 A student is buying a new car. The car's price is $16,500, the sales tax is 8%, and the title, license, and registration fee is $450 to be paid in cash. The dealer offers to finance 90% of the car's price for 48 months at a nominal interest rate of 9% per year, compounded monthly.
(a) How much cash is paid when the car is purchased?
(b) How much is the monthly payment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.