You are interested in purchasing a new automobile that costs $33,000. The dealership offers you a special financing rate of (0.75% per month) for 60 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to ________.
A) $548
B) $685
C) $959
D) $1096

Question

You are interested in purchasing a new automobile that costs $33,000. The dealership offers you a special financing rate of  (0.75% per month) for 60 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to ________.
A) $548 
B) $685 
C) $959 
D) $1096

Quizplus · Accepted Answer

B) PV = 33,000
I = 0.75
N = 60
FV = 0
Compute payment = $685.03.

You Are Interested in Purchasing a New Automobile That Costs