The table shows a schedule of Evita's payment plan for a used car.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{Evita's Payment Plan for the First Three Years} \\
\hline Year & Balance & Monthly Payment & \begin{tabular}{c}
End of Year \\
Balance
\end{tabular} \\
\hline 1 & & \[tex]$356.82 & \\
\hline 2 & & \$[/tex]356.82 & \\
\hline 3 & & \[tex]$356.82 & \$[/tex]8,563.39 \\
\hline
\end{tabular}

Evita paid \[tex]$2,408.91 in interest. What was the selling price of the car?

A. \$[/tex]12,845.52
B. \[tex]$17,127.07
C. \$[/tex]19,000.00
D. \$21,408.91



Answer :

To determine the selling price of Evita's car, we need to consider the information provided about her payment plan. Let's break down the steps to find the solution:

1. Monthly Payment:
- Evita's monthly payment is \[tex]$356.82. 2. Number of Months in a Year: - There are 12 months in a year. 3. Number of Years: - The payment plan spans 3 years. 4. Total Payments Over 3 Years: - To find the total amount paid in monthly payments over the 3 years, we multiply the monthly payment by the number of months and then by the number of years: \[ 356.82 \, (\text{monthly payment}) \times 12 \, (\text{months in a year}) \times 3 \, (\text{years}) = 12,845.52 \] 5. End-of-Year Balance: - At the end of three years, the remaining balance on the car is \$[/tex]8,563.39.

6. Interest Paid:
- Evita paid a total of \$2,408.91 in interest over the three years.

7. Selling Price Calculation:
- The selling price of the car can be found by adding the total amount paid in monthly payments and the end-of-year balance, then subtracting the interest paid:
[tex]\[ 12,845.52 \, (\text{total monthly payments}) + 8,563.39 \, (\text{end balance}) - 2,408.91 \, (\text{interest paid}) = 19,000.00 \][/tex]

Therefore, the selling price of the car is:
[tex]\[ \boxed{19,000.00} \][/tex]