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Question $3$:

Dennis purchased a new Honda Civic selling for $$26,000.$ Dennis paid $20\%$ as a down payment and financed the balance with a $60-$month fixed installment loan with an APR of $4\%.$

a$)$ Determine the down payment.

b$)$ Determine the amount borrowed.

c$)$ Determine the monthly payment.

d$)$ What is the extra cost to finance the car?

The Installment Buying formula below may be provided to the student.

$m=\frac{p(\frac{r}{n})}{(1-(1+\frac{r}{n}{)}^{(-n*t)})}$

$m=$ monthly payment

$p=$ amount financed

$r=$ annual interest rate $as$ a decimal

$n=$ number $of$ payments per year

$t=$ time $in$ years