Question

Michelle bought a car that costs $25,800 and put a down of $8,000 on it. The car loan is for 60 months and has an interest rate of 3.99%. How much will she actually pay for the car? What will her monthly payment be?

Topic: Exponential Growth & Decay Word Problem

Formula: A=P(1+r)^t

Please help this is due at 10:00!!!

Answer 1

$327.73

Explanation:

$25,800 - $8,000 = $17,800

The car loan is a total of 60 months (so at 60 her payment will be $0) and the interest rate is 3.99%

Growth formula: A = P(1+r)^t

We're asking for what value at x = 60 would make P(1+r)^60 = 0?

As such, $327.73