Mr. and mrs. wallace have decided to buy a car for $21,600. they finance $15,000 of it with a 5-year auto loan at 2.9% arp. what will be their monthly payment be? a. $268.20 b. $268.86 c. $269.54 d. $387.16 i need !

$268.86 which is choice B

Work Shown:

L = loan amount = amount financed = 15000

r = monthly interest rate = (2.9%)/12 = 0.029/12 = 0.00241666666667

n = number of months = 60 (since 5 years = 5*12 = 60 months)

Plug those values into the formula below and simplify

P = (r*L)/(1 - (1+r)^(-n) )

P = (0.00241666666667*15000)/(1 - (1+0.00241666666667)^(-60) )

P = 268.864301358403

P = 268.86

15,000\1000=15

15•17.924=268.86

Answer is 268.86

Step-by-step explanation:

Option B - $268.86

Step-by-step explanation:

Given : Mr. and Mrs. Wallace have decided to buy a car for $21,600. They finance $15,000 of it with a 5-year auto loan at 2.9% ARP.

To find : What will be their monthly payment be?

Solution :

Formula of monthly payment  

 

Discount factor  

Where, Amount = $15,000

Rate r= 2.9%=0.029

 

Time = 5 years  

 

Now, put all the values we get,  

 

 

 

 

 

 

Monthly payment,  

 

 

Therefore, Option B is correct.

The monthly payment is $268.86.

The answer is B. $268.86