Question: You have just purchased a new car, making a down payment of $8,000 and financing the balance of the purchase cost on an installment credit

You have just purchased a new car, making a down payment of $8,000 and financing the balance of the purchase cost on an installment credit plan. According to the credit agreement, you will pay $600 per month for a period of 48 months. If the credit agreement is based on a monthly interest rate of 1 percent, what is the cost of the car?

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