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You Want to Buy a New Car

Question 34

Multiple Choice

You want to buy a new car.The car you picked will cost you $32,000 and you decide to go with the dealer's financing offer of 5.9% compounded monthly for 60 months.Unfortunately,you can only afford monthly loan payments of $300.However,the dealer allows you to pay off the rest of the loan in a one time lump sum payment at the end of the loan.How much do you have to pay to the dealer when the lump sum is due?


A) $14,000.00
B) $21,890.43
C) $25,455.37
D) $22,071.75

Correct Answer:

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