152,440 views
16 votes
16 votes
Robert purchased a 2010 model sedan for $18,000. The dealership offered

him a $99/month payment plan for 48 months, at the end of which the unpaid
balance will be due. If the interest rate is 6%, find the balloon payment due at
the end of 48 months.

User DmitrySandalov
by
2.5k points

2 Answers

24 votes
24 votes

Answer:

the answer is $17,513.21

Explanation:

Just answered online

User Knalli
by
2.3k points
19 votes
19 votes

Answer:

$14,328.

Explanation:

Since Robert purchased a 2010 model sedan for $ 18,000, and the dealership offered him a $ 99 / month payment plan for 48 months, at the end of which the unpaid balance will be due, if the interest rate is 6%, to find the balloon payment due at the end of 48 months the following calculation must be performed:

18,000 x 1.06 = 19,080

19,080 - (99 x 48) = X

19.080 - 4.752 = X

14,328 = X

Thus, after 48 months, the balloon payment due will be $ 14,328.

User Nicoptere
by
2.5k points