Question

Chico is financing a car for $9,550 and an APR 8.9 percent for 3 years. What is his monthly payment if the monthly payment per $100 is $3.52?

A. $336.16

B. $352

C. $251.48

D. $235.24
(I divided 9550 by 100 and then multiplied that by 3.52 and got A but I don't know if that's the right way to do it)

Answer 1

235.24 is the answer is d

Answer 2

A. $336.16

Explanation:

The payment per $100 can be set up as a ratio:

`(3.52)/(100)`

Let the unknown payment be x. Now setting up the ratio over the full value:

`(x)/(9550)`

Set them equal and solve for x:

`(3.52)/(100)=(x)/(9550)`

1
`100x=33616`

This gives x = $336.16

Therefore, the answer is option A.