Car payments may be calculated using this formula: monthly payment=P×(r⁢(1+r)^n)/((1+r)^n−1) Raul buys a truck for $⁢20,000 He makes a down payment of $⁢4,000 and finances the rest at 7% annual interest over 60 months. What will be his approximate monthly payment?

Raul finances $20,000 − $4,000 = $16,000. The monthly interest rate is 0.07 ÷ 12, and the loan lasts 60 months; substituting these values into the payment formula gives approximately $316.84 per month. Rounded to the nearest dollar, that is $317.00, choice D.

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