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

Answer 1

Explanation:

I took the quiz

Answer 2

Option A- 294.85

Explanation:

Given : Andrea is buying a car for $21,450 she will finance $16,450 of it with a 5 year loan at 2.9% APR.

To find : The monthly auto payment.

Solution : From the table we get that monthly car loan payment per $1000 borrowed when interest rate is 2.9% on a 60 month loan is

Monthly car loan payment per $1000 borrowed is $17.924

Per $1000 the finance is
`A=(16450)/(1000)=\$16.45`

Monthly payment = Monthly car loan × Finance

`17.924* 16.45=\$294.8498`

Therefore, Option A is correct.

The Monthly payment is $294.85.