Final answer:
To find the monthly payment for a $9000 car loan with a 4-year term and an APR of 7.72%, we use the loan payment formula, resulting in a monthly payment of $222.45, which corresponds to Option A.
Step-by-step explanation:
The question concerns the calculation of a monthly payment for a car loan, which is a mathematical problem involving the use of the formula for an amortizing loan payment. Given a $9000 car loan with a 4-year term and an APR of 7.72%, we can start the calculation by converting the APR to a monthly interest rate and determining the number of monthly payments. The APR is divided by 12 to get the monthly rate, and the number of years is multiplied by 12 to get the total number of payments.
The monthly interest rate is 0.072 / 12, which equals 0.00643333. The number of monthly payments for a 4-year loan is 4 * 12, which equals 48.
Now, we use the loan payment formula:
PMT = P * r * (1 + r) ^ n / ((1 + r) ^ n - 1)
Where PMT is the monthly payment, P is the principal amount ($9000), r is the monthly interest rate, and n is the total number of payments.
PMT = 9000 * 0.00643333 * (1 + 0.00643333) ^ 48 / ((1 + 0.00643333) ^ 48 - 1) = $222.45
Therefore, the monthly payment would be $222.45, so the correct answer is Option A.