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You are considering purchasing a new truck that will cost you S34,000. The dealer offers you 1.9% APR financing for 48 months (with payments made at the end of the month). Assuming you finance the entire $34,000 and finance through the dealer, your monthly payments will be closest to: OA. $708 B. $736 OC. $594 OD. $1086

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Answer #1

Installment = loan amount/PVIFA(r%,n)
r= 1.9%/12 = 0.158333%,n = 48 , loan amont = 34000$
Installment = 34000/PVIFA(0.158333%,48)
=34000/46.18532
=736.1646
i.e 736 $

Thus ans B) 736

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