How much is the constant amount

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A college student is buying a new car, which costs $16,500 plus 8% sales tax. The title, license, and registration fees are $650. The dealer offers her a financing program that starts with a small monthly payment, and the payments will gradually increase. The dealer offers to finance 80% of the car’s price for 48 months at a nominal interest rate of 9% per year, compounded monthly. The first payment is $300 and each successive payment will increase by a constant dollar amount x.

a) How much is the constant amount x?

b) How much is the 48th payment?

Reference no: EM131099354

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