Follow the steps above and find c, the total of the payments, and the monthly payment. Choose the right answers. Jane Smart buys a new SUV. The price, includin
Question
2 Answer

1. User Answers Aliwohaish12
To the nearest penny c
(0.12×20,500×61)÷(2×12)
=6,252.5
Total of payments
20,500+6,252.5
=26,752.5
Monthly payments
26,752.5÷60
=445.875 
2. User Answers wifilethbridge
Answer:
Jane's monthly payment is $455.6
Stepbystep explanation:
Given :
The price, including tax, of SUV is $22,500.00.
She finances the vehicle over 60 months after making a $2,000 down payment.
The true annual interest rate is 12%.
To Find : What are Jane's monthly payments
Solution :
Since we are given that he made a down payment of $2000
So, After making the down payment the amount becomes : 225002000
=$20500
Now, Formula of monthly payment :
Monthly payment, [tex]M=\frac{\text{Amount}}{\text{Discount factor}}[/tex]
Discount factor [tex]D=\frac{1(1+i)^{n}}{i}[/tex]
Where, Amount = $20500
Rate r= 12%=0.12
[tex]i=\frac{0.12}{12}=0.01[/tex]
[tex]n=60[/tex]
Now, substituting all the values we get,
[tex]D=\frac{1(1+i)^{n}}{i}[/tex]
[tex]D=\frac{1(1+0.01)^{60}}{0.01}[/tex]
[tex]D=\frac{1(1.01)^{60}}{0.01}[/tex]
[tex]D=\frac{10.55}{0.01}[/tex]
[tex]D=\frac{0.45}{0.01}[/tex]
[tex]D=45[/tex]
Monthly payment, [tex]M=\frac{\text{Amount}}{\text{Discount factor}}[/tex]
[tex]M=\frac{20500}{45}[/tex]
[tex]M=455.6[/tex]
Hence , Jane's monthly payment is $455.6