Question

Your friend just purchased a new sports car for $32,000. He received $6,000 for his trade in and he used that money as a down payment for the new sports car. He financed the vehicle at 6.76% APR over 48 months with a monthly payment of $619.71. Determine, from the information given, the installment price of the loan. a. $38,000.00 c. $29,746.08 b. $32,000.00 d. $26,000.00

Answer 1

Answer:

Option (c) is correct.

The Installment price of the loan is $29,746.08

Step-by-step explanation:

Given:  Your friend just purchased a new sports car for $32,000.  He received $6,000 for his trade in and he used that money as a down payment for the new sports car. He financed the vehicle at 6.76% APR over 48 months with a monthly payment of $619.71.

We have to determine the installment price of the loan.  

Installment price of the loan is the type of loan that is repaid in the form of monthly installment and is calculated by multiplying the  total monthly  payment given in installment with the number of months payment is made.

That is

In the given question

monthly payment is $619.71

and time period =  48 months

Thus,  Installment price of the loan =  $619.71  × 48 = $29,746.08

Thus, the Installment price of the loan is $29,746.08

Answer 2

Hi there

the installment price of the loan is

619.71×48=29,746.08....answer

Hope it helps