Respuesta :

Correct  response:

  • The monthly payment on the car purchase is C. $344.19

Method used for calculating the monthly payment

Given:

The purchase price of the car, P = $11,000

The annual interest rate, r = 7.9% = 0.079

Number of years,  = 3 years

Solution:

The periodic interest rate used for the monthly payment calculation is

annual interest rate divided by 12.

Monthly payment formula is given as follows;

  • [tex]M = \mathbf{\dfrac{P \cdot \left(\dfrac{r}{12} \right) \cdot \left(1+\dfrac{r}{12} \right)^n }{\left(1+\dfrac{r}{12} \right)^n - 1}}[/tex]

Where:

n = 12 × t

Therefore, we have;

n = 12 × 3 = 36

[tex]M = \dfrac{11,000 \times \left(\dfrac{0.079}{12} \right) \cdot \left(1+\dfrac{0.079}{12} \right)^{36} }{\left(1+\dfrac{0.079}{12} \right)^{36} - 1} \approx \mathbf{ 344.19}[/tex]

  • The monthly payment is approximately C. $344.19

Learn more about loan repayment here:

https://brainly.com/question/8604342

billupsk1

Answer:

The correct answer would be $334.19

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