Q17

Christie is buying a new car today and is paying a $800 cash down payment. She will finance the balance at 6.3 percent interest. Her loan requires 36 equal monthly payments of $450 each with the first payment due 30 days from today. Which one of the following statements is correct concerning this purchase?

	A.	The present value of the car is equal to $800 + (36 $450).
	B.	The $800 is the present value of the purchase.
	C.	The future value of the loan is equal to 36 $450
	D.	To compute the initial loan amount, you must use a monthly interest rate.