When advertising special financing deals car makers often us

When advertising special financing deals, car makers often use rates to describe what your monthly payment will look like (This is because the amount you need to borrow varies widely based on the car you choose and the down payment you make.) In January 2013, Hyundai offered 2.9% financing on the Genesis coupe which would result in monthly payments of $22.09 per $1, 000 borrowed for 48 months. For every borrowed, the monthly payment will be. Complete the table of loan payments using your answer to Question 1. Write the rate Hyundai advertised as a fraction. Use your answer to Question 3 and dimensional analysis for Questions 4 and 5.

Solution

Q.1. For every $1,000 borrowed, the monthly payment will be $22.09

Q.2. Table

Amount

Borrowed

Loan

Payment

$1,000

Q.3. Rate that is advertised by Hyundai = 2.9% = 2.9/100 = .029

Amount Borrowed	Loan Payment
$1,000	$22.09
$2,000	$44.18
$3,000	$66.27
$4,000	$88.36
$5,000	$110..45
$6,000	$132.54
$7,000	$154.63
$8,000	$176.72
$9,000	$198.81
$10,000	$220.90