You are buying a pre-owned car today at a price of $9,200. You are paying $1,500 down in cash and financing the balance for 60 months at 7.25%. What is the amount of each loan payment?

Question

Quizplus · Accepted Answer

To calculate the monthly loan payment, you can use the formula for an installment loan payment or an online loan calculator. The loan amount is $9,200 (total price) - $1,500 (down payment) = $7,700. Financing $7,700 at 7.25% interest for 60 months results in a monthly payment of approximately $153.38.

You Are Buying a Pre-Owned Car Today at a Price