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?
<pre>Monthly payment: {{{highlight_green("$410.28")}}}
After month 20, amount owed was: {{{highlight_green("$10,595.18")}}}