Suppose that you decide to buy a car for 27,635, including taxes and license fees. You saved 5000 for a down payment and can get a four year car loan at 7.78% what is the monthly payment

Monthly payment= $550.25

Step-by-step explanation:

First, we need to calculate the value of the loan:

Loan= 27,635 - 5,000

Loan= $22,635

Now, the monthly payment:

Interest rate (i)= 0.0778/12= 0.006483

n= 4*12= 48 months

Loan (PV)= $22,635

We need to use the following formula:

Monthly payment= (PV*i) / [1 - (1+i)^(-n)]

Monthly payment= (22,635*0.007483) / [1 - (1.006483^-48)]

Monthly payment= $550.25

the answer is c

step-by-step explanation:

the simplified form is

step-by-step explanation:

we want to simplify the expression,

let us change the middle bar to a normal division sign to obtain,

we multiply the first fraction by the reciprocal of the second fraction to obtain,

we factor to obtain,

we cancel the common factors to get,

we simplify to get,

the correct answer is b