Solve the problem.
-Suppose you purchase a new car for $27,200. What are the monthly payments for a 4-year loan with a $2,000 down payment if the annual interest rate is 4.5%?
A) $689.58
B) $459.72
C) $574.65
D) $804.51

Question

Quizplus · Accepted Answer

The loan amount is $25,200 ($27,200 - $2,000). The monthly interest rate is 0.375% (4.5% annual rate divided by 12 months). The loan term is 48 months (4 years). Using the formula for monthly payments on an amortizing loan, the monthly payment is approximately $574.65.

Solve the Problem. -Suppose You Purchase a New Car for $27,200. What Are