Mike wants to buy a new dodge charger. he is able to negotiate a price of $21,500 for the
color and options he wanted. he can secure a 48 month car loan at 6.8% if he can make a
down payment of 20% of the price.
a. how much are his car payments?
b. at the end of 20 months, mike gets a bonus from work, and he decides to pay off his car
loan. how much does he owe after 20 months?

If we refer his car payments by month base on the 48-month car loan at 6.8%, his payment will be $1,462/month. And if we refer to the full cost of the car by using the 48-month loan it can cost $74,476. After 20 months mike decided to pay the remaining payments for his car. So if mike pays responsibly to his $1,462/month, it cost to $29,240. To get the remaining payment just subtract the total cost of the car to the 2o months he pays the loan. So, $74,476 - $29,240 = $45,236 this is the amount that he need to pay after 20 months.