SOLUTION: Mike wants to buy a new car. He is able to negotiate a price of $21,500. He can secure a 48 month car loan at 6.8% if he can make a down payment of 20% of the price. a. How much

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Question 1074662: Mike wants to buy a new car. He is able to negotiate a price of $21,500. He can secure a 48 month car loan at 6.8% if he can make a down payment of 20% of the price.
a. How much are his car payments
b. At the end of 20 months, Mike gets a bonus from work, and he decides to pay off his car loan. How much does he owe after 20 months?
Found 2 solutions by jorel1380, MathTherapy:
Answer by jorel1380(3719)   (Show Source): You can put this solution on YOUR website!
The price of the car is $21500. Mike makes a down payment of 20%, or $4300; leaving him with a balance of $17200. So, the total loan is worth:
17200 x (1+(4 x 0.068))=17200 x 1.272=21878.4
a.Since his payments are monthly, those amount to $455.80/month
b.21878.4-(20x455.8)=$12762.40 as the remaining balance after 20 months. ☺☺☺☺
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!

Mike wants to buy a new car. He is able to negotiate a price of $21,500. He can secure a 48 month car loan at 6.8% if he can make a down payment of 20% of the price.
a. How much are his car payments
b. At the end of 20 months, Mike gets a bonus from work, and he decides to pay off his car loan. How much does he owe after 20 months?
Monthly payment: 

After month 20, amount owed was:  

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