mary smith purchased a new car for $28,750. she made a 15% down payment and financed the balance at her bank for 3 years. what payments are required at the end of every month, at 18% interest, to pay off the loan?

Question

mary smith purchased a new car for $28,750. she made a 15% down payment and financed the balance at her bank for 3 years. what payments are required at the end of every month, at 18% interest, to pay off the loan?

Answer 1

$28750 x 15% = $4312.50 (down payment)

$28750 - $4312.50 = $24437.50 TO FINANCE

3 YEARS TO FINANCE = 36 MONTHS

24437.50 / 36 = $678.82 WITHOUT INTEREST

678.82 X 18% = 122.19
$678.82 + 122.19 = $801.01

$801.01 would be the monthly payment