Jimmy just bought a new Ford SUV for his business. The price of the ve

Jimmy just bought a new Ford SUV for his business. The price of the vehicle was $40,000. Jimmy
made a $5,000 down payment and took out an amortized loan for the rest.

The car dealership made
the loan at 8% interest compounded monthly for five years. He is to pay back the principal and
interest in equal monthly installments beginning one month from now. Determine the amount of
Jimmy’s monthly payment.
A) $634.56 B) $809.33 C) $745.87 D) $709.67

ANSWER

D