Question

10. Morris buys a car for $10,295. He gets a trade-

in allowance of $2295 for his old car. If he
takes out a loan at 12% interest for 4 years,
how much will the monthly payments be?

Answer 1

$187

Explanation:

$10,295 - $2,295 = $8,000

Price of car = $8,000

4 years is 48 months

$8,000 x 12% = $8,960

$8,960 / 48 = 186.67

round up to $187 a month