Question: 2. This exercise will lead you through calculating the costs involved in purchasing the same car as in question 1 above. Purchase Price: $17 300

2. This exercise will lead you through calculating the costs involved in purchasing the same car as in question 1 above. Purchase Price: $17 300 Down Payment: $2505 Balance to be financed at 1.9% interest over 3 years, compounded monthly Freight and PDI: $850 Air Conditioning Tax: $100 Administration Fee: $85 a. Calculate the total cost of the car, including (15%) taxes. (5 marks) b. Calculate the total amount to be financed by subtracting the down payment from the total cost of the vehicle, and then using the compound interest formula A = P(1 + i)". (3 marks) C. Calculate how much the car will actually cost by adding the amount to be financed in part b to the down payment. (2 marks) d. Calculate the monthly payments using: (1 + i)" - 1 FV - PMT 2

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