Suppose you finance $25,000 of the purchase price of a new car with a 60-month loan at 0.4 percent per month. What will your payments be?

a. $373.24

b. $416.67

c. $469.49

d. $482.02

Answer:

c. $469.49

Explanation:

please mark me brainliest

If you finance $25,000 auto loan for a 60-month period at 0.4% interest per month, your monthly payments will be c. $469.49.

Data and Calculations:

N (# of periods) = 60 months (5 years)

I/Y (Interest per year) = 4.8% (0.4% per month)

PV (Present Value)  = $25,000

FV (Future Value) = x  

P/Y (# of periods per year) = 12

C/Y (# of times interest compound per year) = 12

PMT made at the of each period

Results:

Monthly Payment = $469.49

Sum of all periodic payments (x) = $28,169.00 ($469.49 x 60)

Total Interest = $3,169 ($28,169 - $25,000)

Thus, the payments per month will be $469.49.

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