Final answer:
Kevin's monthly payments for his car, after making a $3,000 down payment on an $8,000 car and planning to pay off the loan in 25 months, will be $200 per month.
Step-by-step explanation:
The question asks us to calculate Kevin's monthly payments for an $8,000 car after making a $3,000 down payment when he plans to pay off the remaining balance in 25 months.
To find the loan amount, subtract the down payment from the total cost of the car:
- Total cost of car: $8,000
- Down payment: $3,000
- Loan amount: $8,000 - $3,000 = $5,000
Kevin will need to pay off $5,000 in 25 months. To find the monthly payment, divide the loan amount by the number of months:
- Monthly payment = $5,000 / 25 months
- Monthly payment = $200
Therefore, Kevin's monthly payment is $200, which corresponds to option B.
The correct option is B. $200