What would a monthly payment be on a purchase of an $11,000 car at 7.9% for 3 years? A. $334.39 B. $312.50 C. $344.19 D. -$344.19

Correct  response:The monthly payment on the car purchase is C. $344.19Method used for calculating the monthly paymentGiven:The purchase price of the car, P = $11,000The annual interest rate, r = 7.9% = 0.079Number of years,  = 3 years Solution:The periodic interest rate used for the monthly payment calculation is annual interest rate divided by 12.Monthly payment formula is given as follows;[tex]M = \mathbf{\dfrac{P \cdot \left(\dfrac{r}{12} \right) \cdot \left(1+\dfrac{r}{12} \right)^n }{\left(1+\dfrac{r}{12} \right)^n - 1}}[/tex]Where:n = 12 × tTherefore, we have;n = 12 × 3 = 36[tex]M = \dfrac{11,000 \times \left(\dfrac{0.079}{12} \right) \cdot \left(1+\dfrac{0.079}{12} \right)^{36} }{\left(1+\dfrac{0.079}{12} \right)^{36} - 1} \approx \mathbf{ 344.19}[/tex]The monthly payment is approximately C. $344.19Learn more about loan repayment here: