Question

Maria plans to purchase a new work truck. The dealer requires a 10% down payment on the $47,000 vehicle. Maria will finance the rest of the cost with a fixed-rate amortized auto loan at 3.5% annual interest with monthly payments over 5 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas. (a) Find the required down payment. (b) Find the amount of the auto loan. (c) Find the monthly payment.

Answer 1

A: 4700

B: 42300

C: 769.51