Sarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the amount of $3,000. She would like to borrow the remainder from a bank at an interest rate of 8% compounded monthly. She agrees to make monthly payments for a period of two years in order to pay off the loan.Select the correct answer for each of the following questions:(a) What is the amount of the monthly payment (A)?1. A = $12,000 (A/P, 0.75%, 24).2. A = $12,000 (A/F, 0.66%, 24).3. A = $12,000 (A/P, 0.66%, 24).4. A = $12,000 (A/F, 9%, 2)/12. (b) Sarah has made 12 payments and wants to figure out the remaining balance immediately after the 12th payment. What is that remaining balance?1. B12 = 12A.2. B12 = A(P/A, 9%, 1)/12.3. B12 = A(P/A, 0.66%, 12).4. B12 = 10,000-12A.
Sarah Maddox wants to buy a new car that will cost $15,000. She will make a down payment in the amount of $3,000. She would like to borrow the remainder from a bank at an interest rate of 8% compounded monthly. She agrees to make monthly payments for a period of two years in order to pay off the loan.
Select the correct answer for each of the following questions:
(a) What is the amount of the monthly payment (A)?
1. A = $12,000 (A/P, 0.75%, 24).
2. A = $12,000 (A/F, 0.66%, 24).
3. A = $12,000 (A/P, 0.66%, 24).
4. A = $12,000 (A/F, 9%, 2)/12.
(b) Sarah has made 12 payments and wants to figure out the remaining balance immediately after the 12th payment. What is that remaining balance?
1. B12 = 12A.
2. B12 = A(P/A, 9%, 1)/12.
3. B12 = A(P/A, 0.66%, 12).
4. B12 = 10,000-12A.
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