Question

You are interested in purchasing a new automobile that costs $33,000. The dealership offers you a special financing rate of 9% annual rate (0.75% per month) for 60 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to ________. A. $548 B. $685 C. $959 D. $1096

Answer 1

$685

Step-by-step explanation:

Workings

Cost of new automobile = $33,000

Financing rate = 9%/ annual or 0.75 / month

Period of payment = 60 months

1st month payment = (33000/60 ) + (33000*0.75%)

550+247.5 = 797.5

Closest amount here is $685