Question

Sam obtains a $20,000 loan for a new car. If the interest rate is 3.5% with a loan term of 72 months, how much will his monthly payment be? (Round to the nearest cent)

Answer 1

Answer: 287.5 monthly payments

Explanation:

3.5 = 0.035= 700 20,000 + 700 = 20,700 ÷ 72 =287.5 This is a step by step equation but first you convert or simplify the percent to decimal then you make it to a whole number and you get what the percent is equal to. Next , you add 700 to 20,000 an you get 20,700. Lastly you divided 20,700 by 72 and you get the answer 287.5 .