Jason is trying to figure out whether he can afford a new car. The car he wants costs $32,000, and he can make a down payment of $8,000. He'll have to get a loan for the rest of the amount and make 48 equal monthly payments on it. Each month, he also has to pay interest equal to 5% of that month's payment. How much will Jason's monthly payments be?
How much will Jason have to borrow? ** First figure out how much the loan will be: $32,000 - $8,000 = $<<32000-8000=24000>>24,000
How much will Jason's monthly payments be? ** Then divide the loan amount by the number of payments to find the monthly payment before interest: $24,000 / 48 months = $<<24000/48=500>>500/month
How much will Jason's monthly payments be? ** Then multiply the loan amount by 5% to find out how much the interest is: $500/month * .05 = $<<500*.05=25>>25/month
How much will Jason's monthly payments be? ** Then add the interest to the payment amount to find the total monthly payment: $500/month + $25/month = $<<500+25=525>>525/month
#### 525