Calculating Car Loan Payments

The video tutorial explains how to calculate Tatyana's monthly car payment for a BMW costing $30,000. She makes a $6,000 downpayment and borrows the rest with a 60-month loan at an annual interest rate of 4.71%. The tutorial walks through identifying key values, applying them to a formula, and using order of operations to find the monthly payment, which is $450.

What is the total cost of the BMW Tatyana wants to purchase?

• $40,000

• $35,000

• $30,000

• $25,000

How much is Tatyana's down payment for the car?

• $7,000

• $5,000

• $8,000

• $6,000

What is the duration of Tatyana's car loan?

• 72 months

• 60 months

• 84 months

• 48 months

What is the annual interest rate on Tatyana's loan?

• 6.0%

• 5.2%

• 4.71%

• 3.5%

What does the variable 'M' represent in the formula?

• Total loan amount

• Monthly payment

• Annual interest rate

• Number of payments

How do you calculate the amount Tatyana needs to borrow?

• Multiply down payment by total cost

• Add down payment to total cost

• Subtract down payment from total cost

• Divide down payment by total cost

How is the annual interest rate converted to a monthly rate?

• Divide by 12

• Multiply by 12

• Subtract 12

• Add 12

What is the monthly interest rate as a decimal?

• 0.0039

• 0.0047

• 0.0051

• 0.0062

What is the first step in the order of operations for the formula?

• Multiply all values

• Divide interest rate by 12

• Perform subtraction

• Calculate the exponent

What is the result of 30,000 minus 6,000?

• 20,000

• 22,000

• 24,000

• 26,000