To determine Teresa's monthly auto payment, we need to use the table provided for the APR and the term of the loan.
1. Identify the loan amount and the table value:
- Teresa is financing \[tex]$19,600.
- The interest rate on her loan is 2.7% APR.
- The term of the loan is 24 months.
2. Find the monthly car loan payment per \$[/tex]1000 borrowed:
- According to the table, for a 2.7% APR over 24 months, the monthly payment per \[tex]$1000 borrowed is \$[/tex]42.849.
3. Calculate the monthly payment:
- First, convert the total loan amount to units of \[tex]$1000:
\[
\text{Loan Amount (in units of \$[/tex]1000)} = \frac{\[tex]$19,600}{\$[/tex]1000} = 19.6
\]
- Next, multiply this value by the payment per \[tex]$1000:
\[
\text{Monthly Payment} = 19.6 \times 42.849 = \$[/tex]839.8404
\]
So, Teresa's monthly auto payment will be \$839.84.
