Tiffany is trying to decide whether or not she can afford the monthly payment of

Question

Tiffany is trying to decide whether or not she can afford the monthly payment of a loan to purchase a new car. The car costs $19,600. She is considering a 5-year loan at 6% interest calculated using the declining balance method. Her monthly payment for a loan of the full amount would be _________ and with a down payment of $7,600 would be _________. (Hint, use table 7.1)

$424.67; $164.67

$378.87; $231.96

$378.87; $146.90

$424.67; $260.00

$424.67; $164.67

$378.87; $231.96

$378.87; $146.90

$424.67; $260.00

Explanation / Answer

Monthly payment: Without down payment $378.92 PMT(6%/12,5*12,-19600) With down payment $231.99 PMT(6%/12,5*12,-12000)

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