Tiffany is trying to decide whether or not she can afford the monthly payment of
ID: 2752511 • Letter: T
Question
Tiffany is trying to decide whether or not she can afford the monthly payment of a loan to purchase a new car. The car costs $19,600. She is considering a 5-year loan at 6% interest calculated using the declining balance method. Her monthly payment for a loan of the full amount would be _________ and with a down payment of $7,600 would be _________. (Hint, use table 7.1)
$424.67; $164.67
$378.87; $231.96
$378.87; $146.90
$424.67; $260.00
$424.67; $164.67
$378.87; $231.96
$378.87; $146.90
$424.67; $260.00
Explanation / Answer
Monthly payment: Without down payment $378.92 PMT(6%/12,5*12,-19600) With down payment $231.99 PMT(6%/12,5*12,-12000)