A customer decides to buy a car for $12,250. He decides to finance the car for 4 years at an 8.5% interest rate. How much will the customer's monthly payments be?

Question

asked Oct 1, 2023 232k views

1 Answer

Evan Gertis · Answer 1 · 2023-10-05T10:33:01+0000

In 4 years there are 48 months, so if we divide the value of the car, we get

$(12250)/(48)\approx255.21$

adding the 8.5% of the monthly payment we get

$255.21\cdot1.085=276.90$

So the monthly payments are $276.9