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

just took test it is A

Answer 1

2.9% apr

5 years to pay

loan= 21450-16450= $5000

apr = .029

.029/12 =.0024

.0024(5000)=12.08

.0024+1=1.0024

1.0024^(5*12)= 1.15

1/1.15= .86

1-.86 = .14

60/ .14= $294.85$

I