Answer:
$290
Explanation:
$290
Banks discourage customers paying the loan early
by having customers pay the interest FIRST
If the interest is $1,439 then the first 5 months of the loan the customer pays for is just the interest until the $1439 is paid. This way the bank get its money first. Then the customer pays for the car itself.
if a customer does pay early the bank makes the customer pay a PENALTY
Principal (Loan without including Interest) Per Month
250
Interest per month
40
Total loan amount
9,000
Total interest paid
(over life of loan)
1,439
Total loan & interest paid
10,439
Monthly payment
290