Question 7 of 15 , Step 1 of 1 $5 / 15$ 2 Jenna bought a new car for $\$ 32,000$. She paid a $20 \%$ down payment and financed the remaining balance for 72 months with an APR of $6.5 \%$. Determine the monthly payment that Jenna pays. Round your answer to the nearest cent, if necessary. Formulas Answer Keypad How to enter your answer (opens in new window) Keyboard Shortcuts Submit Answer

Step 1 ：First, calculate the down payment by finding 20% of the total cost of the car. This can be done by multiplying the total cost of the car, $32,000, by 20%. This gives us a down payment of $6,400.

Step 2 ：Next, subtract the down payment from the total cost of the car to find the amount that Jenna financed. This can be done by subtracting $6,400 from $32,000, which gives us $25,600.

Step 3 ：Then, calculate the monthly interest rate by dividing the annual interest rate, 6.5%, by 12. This gives us a monthly interest rate of approximately 0.005416666666666667.

Step 4 ：Now, use the formula for calculating the monthly payment for a loan, which is \(M = P[r(1 + r)^n] / [(1 + r)^n – 1]\), where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate, and n is the number of payments. Plugging in the values we have, we get a monthly payment of approximately $430.33.

Step 5 ：Finally, round the monthly payment to the nearest cent to get the final answer. Jenna's monthly payment is \(\boxed{430.33}\).