Question

What will the monthly payments be if you were to buy a $24,998 car with a 4.9% APR for 60 months and a down payment of $2,000?

$321.47
$421.47
$487.21
$521.47

Answer 1

The monthly payment for a $24,998 car loan with a 4.9% APR, 60-month term, and $2,000 down payment is approximately $487.21.

Step-by-step explanation:

To calculate the monthly payments for a car loan, we can use the formula:

Monthly Payment = (Loan Amount - Down Payment) / ((1 + Monthly Interest Rate) ^ Number of Months - 1)

In this case, the loan amount is $24,998, the down payment is $2,000, the APR is 4.9%, and the loan term is 60 months. First, we need to convert the APR to a monthly interest rate by dividing it by 12 and then by 100. So the monthly interest rate is 4.9% / (12 * 100) = 0.00408333. Plugging these values into the formula, we get:

Monthly Payment = ($24,998 - $2,000) / ((1 + 0.00408333) ^ 60 - 1)

By solving this equation, we find that the monthly payment is approximately $487.21.