2. Mike wants to buy a new Dodge Charger. He is able to negotiate a price of $21,500 for the color and options he wanted. 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?

Question

2. Mike wants to buy a new Dodge Charger. He is able to negotiate a price of $21,500 for the color and options he wanted. 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?