Hana has decided to purchase a new car. She decides to put 15% down and finance the remaining balance. The bank offers Hana a 48 month loan at 6.76%. If the car is valued at $28,000, what will her monthly payments be?

Question

Mercedes Sandoval

Mathematics

8 May, 22:07

Hana has decided to purchase a new car. She decides to put 15% down and finance the remaining balance. The bank offers Hana a 48 month loan at 6.76%. If the car is valued at $28,000, what will her monthly payments be?

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Answers (2)

Know the Answer?

Blaine Lee · Answer 1

The answer choices are:

a.$567.27c.$760.12 b.$691.32d.$897.32

Elaina Richard · Answer 2

Hana decided to pay down payment which is 15% of the total value of the car

DP = be the down payment amount

DP = 0.15 * $28,000

DP=$4200

The bank offers Hana a 48 months loan at 6.76%.

IA=Interest Amount

Solving for the monthly payment is shown below:

MP=Monthly Payment

MP = ((($28,000-$4200) * 0.067) + ($28,000-$4200)) / 48 months

MP = (($23800*0.0676) + $23800) / 48 months

MP=$25408.88/48

MP=$529.352

Therefore, the monthly payment is $529.352.