Assume you just bought a new car and now have a car loan to repay. The amount of the principal is $22,000, the loan is at 5.9% APR, and the monthly payments are spread out over 6 years. What is the loan payment? Use a calculator to determine your answer. A.$305.56B.$363.57C.$297.70D.$331.1 4

B. $363.57

Step-by-step explanation:

Monthly Repayment = {PXr(1+r)ⁿ}/{(1+r)ⁿ-1}

Where P=Principal

n= number if repayments in months

r= monthly rate

To determine the monthly rate, Divide the rate by 12

Rate= 5.9%= 0.059

Monthly Interest Rate=0.059/12

= 0.00492

n=6 years X 12 Months

Principal=$22000

Monthly Repayment

= {PXr(1+r)ⁿ}÷ {(1+r)ⁿ-1}

= {22000X(0.059/12)X(1+0.059/12)⁷²} ÷ {(1+0.059/12)⁷²-1}

={108.24(1.00492)⁷²} ÷ {(1.00492)⁷²-1}

=363.5659341655674

Monthly Payment= $363.57

the answer is $42.96

step-by-step explanation: