Tiffany has decided to purchase an $11,000 car. She plans on putting $500 down toward the purchase, and financing the rest at a 5.8% interest rate for 4 years. Find her monthly payment.

Answer:   $245.63Step-by-step explanation:The amortization formula is used for the purpose:   A = P(r/12)/(1 -(1 +r/12)^(-12t))where A is the monthly payment, P is the amount financed, r is the annual interest rate, and t is the number of years.Filling in the given numbers, we have ...   A = $10,500(0.058/12)/(1 -(1 +0.058/12)^(-12·4)) ≈ $245.63Tiffany's monthly payment is $245.63.