Ryan made a $3,000 down payment on a car. The total cost of the car was $7,500. He made 36 equal monthly payments to pay the car in full. How much did Ryan pay per month?

Answer 1

The total cost is $7500, which means Ryan owes $7500. Since Ryan placed a down payment (meaning he pays this money upfront) of $3000, he only owes $4500 (7500-3000). Now he only owes $4500 and wants to split that over 36 equal monthly payments. Do 4500/36 = $125. He will pay $125 a month.