You are buying a pre-owned car today at a price of $9,200. You are paying $1,500 down in cash and financing the balance for 60 months at 7.25%. What is the amount of each loan payment?

A) $152.46
B) $153.38
C) $153.27
D) $154.06
E) $154.89

Question

Tushar Sharma · Accepted Answer

Final Answer : B, Explanation :  To calculate the monthly loan payment, you can use the formula for an installment loan payment or an online loan calculator. The loan amount is $9,200 (total price) - $1,500 (down payment) = $7,700. Financing $7,700 at 7.25% interest for 60 months results in a monthly payment of approximately $153.38.

You are buying a pre-owned car today at a price of $9,200. You are paying $1,500 down in cash and financing the balance for 60 months at 7.25%. What is the amount of each loan payment?

A) $152.46
B) $153.38
C) $153.27
D) $154.06
E) $154.89

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Learning Objectives

Related questions

You are buying a pre-owned car today at a price of $9,200. You are paying $1,500 down in cash and financing the balance for 60 months at 7.25%. What is the amount of each loan payment?A) $152.46B) $153.38C) $153.27D) $154.06E) $154.89

Definitions

Learning Objectives

Learning Objectives

Related questions

You are buying a pre-owned car today at a price of $9,200. You are paying $1,500 down in cash and financing the balance for 60 months at 7.25%. What is the amount of each loan payment?

A) $152.46
B) $153.38
C) $153.27
D) $154.06
E) $154.89