Question

Follow the steps above and find c, the total of the payments, and the monthly payment. Choose the right answers.

Jane Smart buys a new SUV. The price, including tax, is $22,500.00. She finances the vehicle over 60 months after making a $2,000 down payment. The true annual interest rate is 12%. What are Jane's monthly payments (principal plus interest)?

Answer 1

C=(0.12×20,500×61)÷(2×12)=6,252.5

Total payments
6,252.5+20,500
=26,752.5

Monthly payment
26,752.5÷60
=445.875