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25 February, 14:54

alex purchased a 2010 model sedan for $24,000. The dealership offered him a $199/month payment plan for 48 months, at the end of which the unpaid balance will be due. If the interest rate is 6%, find the balloon payment due at the end of 48 months.

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  1. 25 February, 18:41
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    a = prt

    a = 24,000 x 0.06 x (48 / 12) (you have to turn months into years)

    a = 24,000 x 0.06 x 4

    a = $5,760

    The payment due is $5,760
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