Jen buys a motorcycle for $11,000. The dealer is charging her an annual interest rate of 10.75% and is using the add-on method to compute monthly payments. If she pays off the loan in 84 months, what are her monthly payments? If she makes a down payment of $2,000, how much will her monthly payments be? Do not round until the final answer. Then, round to the nearest cent

A $459.90; $187.77
B $229.49; $187.77
C $229.49; $376.29
D $229.49; $271.76

Question

Jen buys a motorcycle for $11,000. The dealer is charging her an annual interest rate of 10.75% and is using the add-on method to compute monthly payments. If she pays off the loan in 84 months, what are her monthly payments? If she makes a down payment of $2,000, how much will her monthly payments be? Do not round until the final answer. Then, round to the nearest cent

A $459.90; $187.77 
B $229.49; $187.77 
C $229.49; $376.29 
D $229.49; $271.76

anonymous · Answer

I know the monthly payments will be 187.77