Car payments may be calculated using this formula: monthly payment=P×(r⁢(1+r)^n)/((1+r)^n−1) Heather buys a used truck for $⁢28,000 The dealer gives her $⁢3,500 for trading in her old car, and she makes an additional down payment of $⁢1,500 She finances the rest at 8% annual interest over 48 months. What will be her approximate monthly payment?

First subtract the trade-in and down payment from the truck’s price: $28,000 − $3,500 − $1,500 = $23,000 financed. The monthly interest rate is 0.08 ÷ 12, and the loan lasts 48 months. Substituting those values into the formula gives a monthly payment of about $561, so the correct choice is $561.00.

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