Per the table, a 2.6% loan for 4 years (i.e., 48 months) will cost her 21.958 dollars per month for every thousand she finances. So how many thousands will she need to borrow? The car costs 14,390, but with a 1,000 trade in and 1,500 in cash, she ends up needing to borrow 11,890.
11,890 can be written as 11.890 x 1,000 so Elise's monthly payment will be 11.890 x 21.958
A. She will borrow 14,390 minus 1,000 minus 1,500 = 11,890 dollars
B. Her monthly payment will be 11.890 x 21.958 = 261.08 dollars per month
The problem didn't ask for the following, but here it is anyway.
C. For the 11,890 she borrows, she will end up paying back a total of 48 x 261.08 = 12,531.84
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