Car payments may be calculated using this formula: monthly payment=P×(r⁢(1+r)^n)/((1+r)^n−1) Jaden buys a new car for $⁢28,000 The dealer gives her $⁢4,000 for trading in her old car, and she makes an additional down payment of $⁢2,000 She finances the rest at 7% annual interest over 48 months. What will be her approximate monthly payment?

First subtract the trade-in and down payment from the car’s price: $28,000 − $4,000 − $2,000 = $22,000 financed. The monthly interest rate is 0.07 ÷ 12, and the loan lasts 48 months. Substituting these values into the payment formula gives an approximate monthly payment of $527, so the correct choice is $527.00.

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