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Answer:
The complete question is found below:
Molly saw the following deal on the Jeep website and is interested in calculating what her monthly payments ... If Molly has a $2500 down payment saved for this purchase, and assuming the $1500 Cash Allowance will apply... Use the loan calculator to determine how much will Molly's monthly payment be?
Note that the price of the cash as seen in the attached is $25,495
Repayment is for 84 months
Molly's monthly payment is $273.49
Explanation:
The amount of finance=car price-cash allowance-down payment
the amount of finance=$25,495-$1,500-$2,500=$21,495.00
Monthly payment can be determined using excel pmt formula
=pmt(rate,nper,-pv,fv)
rate is rate per month 1.9%/12=0.001583333
nper is 84 months
pv is the amount of finance which is $21,495.00
fv is the total repayment which is unknown
=pmt(0.001583333 ,84,-21,495,0)=$273.49
