Question

Jack bought a new car. The price of the car was $18,936. He paid $3,000 upfront and got a loan for the remaining balance. If he paid the same amount each month for 4 years (at which point the car is paid off), how much was his monthly payment?

Answer 1

Explanation:

Given that:

Price of car = $18,936

Upfront paid = $3000

Time taken to pay remaining balance = 4 years

Amount paid per month if the same amount is paid per month

Remaining balance :

($18,936 - $3000) = $15,936

Number of months in 4 years = (12 * 4). = 48 months

Amount paid per month :

$15,936 / 48

= $332