Question

Calculate the monthly payment for a 5-year car loan of $23,570 at 10.43% interest, compounded monthly. A. $247.44 b. $337.56 c. $433.88 d. $505.79 Please select the best answer from the choices provided A B C D

Answer 1

D

Explanation:

Edge 2023

Answer 2

The correct answer is option D

Explanation:

The total amount to be paid when interest is compounded monthly

`P(1 + (r)/(n))^(nt) \\= 23,570 (1 + ((10.43)/(100) )/(12))^(12 * 5) \\= 23, 570 * 1.68\\= 39597.6\\`

The amount to be paid per month

`= (39597.6)/(60) \\= 660`

The nearest answer to this value is option D