. Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight of

Question

3 years ago

13

. Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500 Cash Allowance straight of

f her total
6. Using the Loan Calculator(https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx) and the 1.9% APR offer, how much will Molly’s monthly payment be?

Business

1 answer:

Anon25 [30] · Answer 1 · 2022-07-11T18:28:35+03:00

Answer: $286

Explanation:

First and foremost, we have to calculate the loan that is need by Molly which will be:

= $25495 - $2500 - $500

= $22495

At 1.9% APR, the monthly interest rate will be:

= 1.9%/12

= 0.0112

=0.001583

Since the number of payments is 84, then the monthly payment of Molly will be:

= 22495 × 0.001583 / (1-1/1.001583^84)

= $286