Answer:
The principal balance will be $ 88 812
Step-by-step explanation:
First, we know that the sales tax is 4.2 %. In other words, the mobile home will attract 4.2 % of the price. This means that the total price will be $ 89 000 + 4.2 %
4.2 % of $ 89 000 gives:
0.042 × $ 89 000
= $ 3 738
Thus, the house has sales tax of $ 3 738
The total price ( including the 4.2 % tax) will be = $ 89 000 + $ 3 738
= $ 92 738
Second, the parents paid $ 925.67 or the total price. The reminder will be $ 92 738 - $ 925.67 = $ 88 812
Answer:
$88812.33
Step-by-step explanation:
Principal = $89,000
But there's a sales tax of 4.2%
Tax = (4.2 / 100) * 89000 = $3738
Total cost of the mobile house = $89000 + $3738 = $92,738
However, they made a down payment of $3000
Balance after down payment = $92,738 - $3000 = $89,738
They've also paid the first monthly payment of $925.67
Balance after first monthly payment =
$89,738 - $925.67 = $88,812.33
The principal balance after applying there first monthly payment is $88,812.33
