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Edna decided to purchase a $15,000 MSRP vehicle at a 5% interest rate for 3 years. The dealership offered her a $1500 cash-back incentive, which she accepted. If she takes all these factors into consideration, what monthly payment amount can she expect?

Edna decided to purchase a 15000 MSRP vehicle at a 5 interest rate for 3 years The dealership offered her a 1500 cashback incentive which she accepted If she ta class=

Respuesta :

jushmk
P = A/D, Where P = Monthly payments, A = Total amount owed = 15,000-1,500 = $13,500,

[tex]D= \frac{( 1+ \frac{r}{12} )^{nt} -1}{ \frac{r}{12} (1+ \frac{r}{12}) ^{nt} } [/tex]

r = 5% = 0.05, nt = 12*3 = 36

Therefore,
D = [tex] \frac{(1+ 0.05/12)^{36}-1 }{(0.05/12)(1+0.05/12)^{36} } [/tex] = 33.37

Then,

P = 13,500/44.37 = $404.61
The correct answer is c.

Answer:404.61

Step-by-step explanation: