Question

Andrea is buying a car for $21,450 she will finance $16,450 of it with a 5 year loan at 2.9% apr what will her monthly auto payment be?
A)$294.85
B)$363.38
C) 477.66
D)$706.32

Answer 1

Answer:

Option A- 294.85          

Step-by-step explanation:

Given : Andrea is buying a car for $21,450 she will finance $16,450 of it with a 5 year loan at 2.9% APR.

To find : The monthly auto payment.

Solution : From the table we get that monthly car loan payment per $1000 borrowed when interest rate is 2.9% on a 60 month loan is

Monthly car loan payment per $1000 borrowed is $17.924

Per $1000 the finance is $A=\frac{16450}{1000}=\ 16.45$        

Monthly payment = Monthly car loan × Finance

$17.924\times 16.45=\ 294.8498$            

Therefore, Option A is correct.      

The Monthly payment is $294.85.