Question

Alex paid $20,448 for a new car. He will make equal payments each month or 4 years. What will be Alex's monthly car payment

Answer 1

$426

Explanation:

According to the question,

New car cost = $20,448

Time to repay = 4 years or 48 months

So, we can calculate the monthly car payment by using following formula,

Monthly car payment = New car cost ÷ Time to repay

By putting the value, we get

Monthly car payment = $20,448 ÷ 48

= $426

Hence, Alex monthly car payment is $426.