Question

Duane decided to purchase a $31,000 MSRP vehicle at a 5.5% interest rate for

Answer 1

Answer:

(C)$\ 506.18$

Step-by-step explanation:

Manufacturer's Suggested Retail Price = $31,000

CashBack = $4500

Amount Financed = $31,000-4500 =$26500

Interest rate Per Annum =5.5%

Rate Per Period (Monthly), r $=\frac{5.5}{12}\%=\frac{0.055}{12}$

Time =5 Years

Number of Periods, n=5 X 12=60 Months

$Monthly \:Payment=\dfrac{rP}{1-(1+r)^{-n}}$

$=\dfrac{\frac{0.055}{12}*26500}{1-(1+\frac{0.055}{12})^{-60}}\\=\ 506.18$