Question

1. a family buys a new minivan for $45,000 and makes a down payment of $12,000. they finance the van for 5 years at 8% interest. calculate the monthly payment if the monthly payment factor is 0.0202764.

$243.32
$550.00
$912.44
$669.12

Explanation:

Step1: Find the loan amount

The total cost of the minivan is $45,000 and the down payment is $12,000. So the loan amount \( L \) is the total cost minus the down payment.
\( L = 45000 - 12000 = 33000 \)

Step2: Calculate the monthly payment

The monthly payment factor is given as 0.0202764. The monthly payment \( M \) is calculated by multiplying the loan amount by the monthly payment factor.
\( M = L\times\text{monthly payment factor} = 33000\times0.0202764 \)
\( M = 33000\times0.0202764 = 669.1192\approx 669.12 \)

Answer:

\$669.12 (Option: D. \$669.12)