Use the information for the question(s) below.
Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR. Your monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV.
-Assuming that you have made all of the first 24 payments on time,then the outstanding principal balance on your SUV loan is closest to:
A) $31,250
B) $20,300
C) $19,200
D) $32,000

Question

Quizplus · Accepted Answer

B) First we need the monthly interest rate = APR / k = .059 / 12 = .004917 or 0.4917%.
Now:
I = .4917
FV = 0
N = 36 (remaining payments 60 - 24 = 36)
PMT = 617.16
Compute PV = $20,316.92

Use the Information for the Question(s) Below