First, find the price of the car along with the tax rate.
7% → 0.07
$7400 × 0.07 = $518
$7400 + $518 = $7918.
Next, calculate the downpayment of 20%
20% → 0.2
$7918 × 0.2 = $1583.6
Deduct $1583.6 from the price with tax to get the amount of loan.
$7918 - $1583.6 = $6334.4
Therefore, the amount of loan is $6,334.4.
