Question

A customer decides to buy a car for $12,250. He decides to finance the car for 4 years at an 8.5% interest rate. How much will the customer's monthly payments be?

Answer 1

In 4 years there are 48 months, so if we divide the value of the car, we get

$\frac{12250}{48}\approx255.21$

adding the 8.5% of the monthly payment we get

$255.21\cdot1.085=276.90$

So the monthly payments are $276.9