Carlee takes out an installment loan to finance the purchase of a pickup truck costing $34,500. Her loan requires a 33.33% down payment and equal monthly payments of $575 for 28 months. Calculate the total deferred payment price.

Question

Quizplus · Accepted Answer

The total deferred payment price is the sum of the down payment and the total of all monthly payments. The down payment is 33.33% of $34,500, which is $11,500. The total of the monthly payments is $575 * 28 = $16,100. Adding these together gives $11,500 + $16,100 = $27,600. However, the closest option is $27,598.85, which accounts for rounding differences.

Carlee Takes Out an Installment Loan to Finance the Purchase