Find the amount of interest and the monthly payment for the loan described below. Round your answers to the nearest cent. Purchased a car for $24,150 at 2.7% add-on interest for 2 years.
A) $\$ 1,304 \cdot 10$ interest; $\$ 1,061.32$ per month
B) $\$ 1,304 \cdot 10$ interest; $\$ 2,121.18$ per month
C) $\$ 1,304 \cdot 10$ interest; $\$ 1,060.59$ per month
D) $\$ 1,321.71$ interest; $\$ 1,061.32$ per month
E) $\$ 1,321.71$ interest; $\$ 1,060.59$ per month

Question

Quizplus · Accepted Answer

The total interest for 2 years at 2.7% on $24,150 is calculated as: $Interest = Principal \times Rate \times Time = \$24,150 \times 0.027 \times 2 = \$1,304.10$. The total amount to be repaid is $Principal + Interest = \$24,150 + \$1,304.10 = \$25,454.10$. Dividing this total by the number of months (24) gives the monthly payment: $\$25,454.10 / 24 = \$1,060.59$.

Find the Amount of Interest and the Monthly Payment for the Loan