BUS $170\mathrm{.}06-$ Mid$-$Term Examination

Spring $2024-$ Page $3$

$9.$ Your Aunt Rose has asked you to help her plan for the purchase of a new automobile. Gumbo's Automobile Sales has a car that she likes. After the trade$-$in and other adjustments, the loan amount will be $$39,500.$ Rose has agreed to finance the vehicle at a nominal $($annual$)$ rate of $7\mathrm{.}6$ percent for $6$ years. Since you have now have a finance background, she wants you to help her determine her monthly payments to fully pay off the car within the six year period.

A$.$ $$755\mathrm{.}90$

B$.$ $$703\mathrm{.}40$

C$.$ $$684\mathrm{.}90$

D$.$ $$661\mathrm{.}00$

E$.$ $$647\mathrm{.}20$

$39,500$ loan

$\frac{7\mathrm{.}61}{y}$

$n=6$