LOTS OF POINTS!! Claudia buys a new car for $11,000. She makes a down payment of $2,000 and the dealer gives her an add-on lo

Question

3 years ago

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LOTS OF POINTS!! Claudia buys a new car for $11,000. She makes a down payment of $2,000 and the dealer gives her an add-on lo

an, charging her an annual interest rate of 9.6%. If she takes out a 3 year loan, what will Claudia's monthly payments be?

Mathematics

1 answer:

nordsb [41] · Answer 1 · 2021-11-08T09:56:09+03:00

Using the formula
A=P*(r(1+r)^n)/((1+r)^n-1)
Where
A=monthly payment
P=Loan amount =11,000-2,000= $9,000
r=annual interest rate/12 or interest rate per month =9.6/12 =0.8%=0.008
n= number of months 3 years=36 months

A=9,000*(0.008(1+0.008)^36)/((1+0.008)^36-1)
A=9,000*(0.010657)/(0.332229)
A=$288.695
A=$288.70

LOTS OF POINTS!! Claudia buys a new car for ​$11,000. She makes a down payment of ​$2,000 and the dealer gives her an​ add-on lo

LOTS OF POINTS!! Claudia buys a new car for $11,000. She makes a down payment of $2,000 and the dealer gives her an add-on lo