Answer:
M ≈ $933.24
Explanation:
To calculate Marcus's monthly payment for financing his car for 5 years at an annual interest rate of 8.5%, we can use the formula for the monthly payment on a loan:
M = P * (r/12) * (1 + r/12)^n / ((1 + r/12)^n - 1)
where:
M is the monthly payment
P is the principal (in this case, $45,000)
r is the annual interest rate (in this case, 8.5%)
n is the number of monthly payments (in this case, 5 years * 12 months/year = 60 monthly payments)
Substituting the given values, we get:
M = $45,000 * (0.085/12) * (1 + 0.085/12)^60 / ((1 + 0.085/12)^60 - 1)
Using a calculator, we get:
M ≈ $933.24
Therefore, Marcus's monthly payment for financing his car for 5 years at an annual interest rate of 8.5% is approximately $933.24.