Down payment, loan amount and monthly payment for a loan
Three parts that feed each other. The one that matters is financing the loan, not the sticker price.
A short walkthrough explaining what you need to know and how to solve this question type lands here once it's recorded.
ALEKS randomizes the numbers each attempt, but the question shape stays the same. Here are three example versions you might see.
A $38,000 vehicle with a 25% down payment required.
How much is financed? Type just the number.
Same vehicle: $28,500 financed at 6.99% with monthly payments over 6 years.
Find the monthly payment. Type just the number.
A $16,400 car with 10% down, financed at 8.99% over 4 years.
Find the monthly payment. Type just the number.
Marcus plans to purchase a used van. The dealer requires a 15% down payment on the $24,500 vehicle. Marcus will finance the rest with a fixed-rate amortized auto loan at 8.25% annual interest with monthly payments over 5 years.
(a) Find the required down payment.
(b) Find the amount of the auto loan.
(c) Find the monthly payment.
Do not round intermediate computations. Round final answers to the nearest cent.
(a) The down payment
(b) The loan amount
(c) Which P goes in the formula?
i and N
(c) The monthly payment
The van costs more than $24,500
Sixty payments of $424.75 is $25,485, and the $3,675 down payment sits on top of that. Marcus pays $29,160 altogether for a $24,500 van.
The question does not ask for that figure, but working it out once is what makes the exercise mean something — and it is a good check that your payment is sensible. If your total came out below the sticker price, the payment is wrong.