Question 2
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Question text
Tom is going to buy a new Toyota Mercury for $23800. The dealership will offer a loan for the total value of the car at 2.25% APR for 4 years.
Use Web Loan Calculator to answer. Round all answers to the nearest penny.
How much will Tom have to pay per month for 4 years?
I went through a very similar question for you in your previous post.
Using a "Web Loan Calculator" and being asked to put the answer in a webpage input box will not allow you to learn how to do this type of problem.
To answer this question, you can use a web loan calculator. Here are the steps to calculate how much Tom will have to pay per month for 4 years:
1. Open a web browser and search for a loan calculator. There are several websites that offer loan calculators, such as Bankrate, NerdWallet, or Mortgage Calculator.
2. Once you have opened a loan calculator website, look for the section that allows you to calculate loan payments. It is usually labeled as "Loan Payment Calculator" or something similar.
3. Enter the required information into the loan calculator. In this case, you'll need to enter the loan amount, interest rate, and loan term.
- Loan amount: $23,800 (the total value of the car)
- Interest rate: 2.25% APR
- Loan term: 4 years
4. Make sure the calculator is set to calculate monthly payments. Monthly payments are commonly used for car loans and other installment loans.
5. Click on the "Calculate" or similar button to get the result. The loan calculator will now show you the estimated monthly payment that Tom will have to make for 4 years.
The result will be the amount that Tom will have to pay per month for 4 years. Make sure to round the answer to the nearest penny, as stated in the question.