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Juli2301 [7.4K]
3 years ago
5

Mr. and Mrs. Wallace have decided to buy a car for $21,600. They finance $15,000 of it with a 5-year auto loan at 2.9% ARP. what

will be their monthly payment be?
A. $268.20

B. $268.86

C. $269.54

D. $387.16


PLEASE I NEED HELP!
Mathematics
2 answers:
Veronika [31]3 years ago
6 0

15,000\1000=15

15•17.924=268.86

Answer is 268.86


Step-by-step explanation:


olchik [2.2K]3 years ago
3 0
<h3>Answer: $268.86 which is choice B</h3>

===============================

Work Shown:

L = loan amount = amount financed = 15000

r = monthly interest rate = (2.9%)/12 = 0.029/12 = 0.00241666666667

n = number of months = 60 (since 5 years = 5*12 = 60 months)

Plug those values into the formula below and simplify

P = (r*L)/(1 - (1+r)^(-n) )

P = (0.00241666666667*15000)/(1 - (1+0.00241666666667)^(-60) )

P = 268.864301358403

P = 268.86

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