22. Rose bought a $13,500 car, paid 20% down, and paid the rest in equal monthly installments for 3 years, no interest. What was each monthly installment?
Answer: A
Each monthly installment was $300.
Rose paid 20% of the $13,500 car price as a down payment, which amounts to $2,700. The remaining balance of $10,800 was then divided into equal monthly installments over 3 years, resulting in monthly payments of $300.
A) 300
This option is correct because after calculating the down payment of 20% ($2,700), the remaining balance of $10,800 is divided by 36 months (3 years), yielding a monthly installment of $300.
B) 325
This option is incorrect. If we assume monthly payments of $325, the total payment over 36 months would be $11,700, which exceeds the remaining balance of $10,800 after the down payment.
C) 350
This option is also incorrect. A monthly payment of $350 would total $12,600 over 36 months, again surpassing the remaining balance of $10,800 after the down payment.
D) 375
This option is incorrect as well. A monthly payment of $375 would equal $13,500 over 36 months, which is significantly more than the $10,800 balance remaining after the down payment.
Conclusion
The correct answer is definitively $300 because it accurately reflects the equal division of the remaining balance after the down payment. All other options result in total amounts that do not align with the remaining balance, confirming that they are incorrect.