Max wants a used car He finds a deal for a Maxima at a total

Max wants a used car. He finds a deal for a Maxima at a total cost of $14200 if he can put 28½ % down and his equal monthly payments would be complete in two years. Max thinks it over and pays the down payment. How much are his monthly payments?  

Solution

There is no mention of interest. Therefore, we assume that the deal for Maxima does not involve any payment of interest.

Further, 28.5 % of $14200 = 14200*28.5/100 = $ 4047. Then the balance amount is $ 14200- $4047 = $ 10153. This amount is to be paid in 24 ( =2*12) equal monthly instalments. Therefore, the monthly payment is $ 10153/24 = $ 423.04 ( on rounding off to the nearest cent).