Sally Ray borrowed $38,000 to buy a new Chevy Volt. Assuming an interest charge of $4,100, what will be her monthly payment if she takes 25 months to repay the loan interest. Assume the loan is repaid in equal payments.
A)$1,520
B)$1,684
C)$1,864
D)$1,250
E)None of these

Question

Quizplus · Accepted Answer

To find the monthly payment, add the principal ($38,000) and the interest ($4,100) to get the total amount to be repaid, which is $42,100. Then, divide this total by the number of months (25) to get the monthly payment: $42,100 / 25 = $1,684.

Sally Ray Borrowed $38,000 to Buy a New Chevy Volt