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## Robert purchased a 2010 model sedan for $18,000. The dealership offered him a $99/month payment plan for 48 months, at the end of whic

Question

Robert purchased a 2010 model sedan for $18,000. The dealership offered

him a $99/month payment plan for 48 months, at the end of which the unpaid

balance will be due. If the interest rate is 6%, find the balloon payment due at

the end of 48 months.

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Mathematics
3 years
2021-08-07T08:14:49+00:00
2021-08-07T08:14:49+00:00 1 Answers
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## Answers ( )

Answer:$14,328.

Step-by-step explanation:Since Robert purchased a 2010 model sedan for $ 18,000, and the dealership offered him a $ 99 / month payment plan for 48 months, at the end of which the unpaid balance will be due, if the interest rate is 6%, to find the balloon payment due at the end of 48 months the following calculation must be performed:

18,000 x 1.06 = 19,080

19,080 – (99 x 48) = X

19.080 – 4.752 = X

14,328 = X

Thus, after 48 months, the balloon payment due will be $ 14,328.