4. The Honda dealership offers a 100,000-mile warranty on their new cars for an additional $1,500 to the car price. If Amanda is financing her new Honda Civic over a period of 60 months and has the $1,500 warranty cost divided equally over those 60 months, how much more will her monthly payment be? (Section 15.3) (1 point) 5. Adam is buying a new Chevrolet Camaro from his local dealership for $26,000. The dealership is giving him $5,500 toward the new purchase on a trade-in for his old Honda Civic, and he is also putting an additional 10% down payment on the car. How much is Adam financing (borrowing) on the new car? (Section 15.4) (1 point)

6. Alicia is borrowing $15,000 to purchase a new car. With her credit score, she qualifies for a 6% annual percentage rate. She wants to pay back the loan over a period of 60 months (5 years). Using the table below, determine: a. what Alicia’s monthly payment is for 60 months. (Section 15.6) (1 point) b. the total amount she pays back the lender in 60 months. (Section 15.6) (1 point) c. the amount she paid in interest over the 60 months. (Section 15.6) (1 point)
Monthly payment per $1,000 borrowed for various annual rates and various number of payments. Annual Interest Rate Number of Monthly Payments 36 48 60 5% $29.97 $23.03 $18.87 6% $30.42 $23.49 $19.33 8% $31.34 $24.41 $20.28 10% $32.27 $25.36 $21.24 12% $33.22 $26.34 $22.24

7. One of the disadvantages of leasing a car instead of buying is that you are only allowed to drive a certain number of miles for the time you lease the car (usually 2 or 3 years). If you go over your miles, you can end up owing the dealer a lot of money at the end of the lease. If you drive a lot for work, leasing a car is probably not the best option for you. Mikey’s three-year lease allowed him to drive 12,000 miles per year with a penalty of $0.20 per mile for going over his included miles. When Mikey turned in the car to the dealer, it had 38,300 miles on it. How much does Mikey owe the dealer in penalties? (Section 15.7) (1 point)