Mr. and mrs. wallace have decided to buy a car for $21,600. they finance $15,000 of it with a 5-year auto loan at 2.9% arp. what will be their monthly payment be? a. $268.20 b. $268.86 c. $269.54 d. $387.16 (monthly car loan payment per $1,000 borrowed) i need !

The answer is B. $268.86

Option B - $268.86

Step-by-step explanation:

Given : Mr. and Mrs. Wallace have decided to buy a car for $21,600. They finance $15,000 of it with a 5-year auto loan at 2.9% ARP.

To find : What will be their monthly payment be?

Solution :

Formula of monthly payment  

Discount factor  

Where, Amount = $15,000

Rate r= 2.9%=0.029

Time = 5 years  

Now, put all the values we get,  

Monthly payment,  

Therefore, Option B is correct.

The monthly payment is $268.86.

step-by-step explanation: