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.

Answer 1

@apoorvk @ajprincess @dpaInc

Answer 2

Using add-on method
Interest = $11,000 x 0.1075 x 7 = $8,277.50
Principle + Interest = $11,000 + $8,277.50 = $19,277.50
Monthly Payment = $19,277.50 / 84 = $229.49

If she makes $2,000 down payment, then
Interest = $9,000 x 0.1075 x7 = $6,772.50
Monthly Payment = ($9,000 + $6,772.50) / 84 = $187.77

Answer 3

Thank You So Much Mr To

Answer 4

yw