Answer to Question #284641 in Economics of Enterprise for Harmony

Question

Molly has a $2500 down payment saved for this purchase, and the dealer’s $1500 Cash Allowance will come straight off her total. How much will Molly’s monthly payment be? 

Answer 1

Molly’s monthly payment will be:

Loan needed by Molly = $25495-2500-1500=\$21495$

Amount of Molly’s monthly payment = $\frac{21495}{36}=\$597.08$