First Financial Auto Loan Department Wishes to Know the Payment

Multiple Choice

First Financial Auto Loan Department wishes to know the payment required at the first of each month on a $10,500, 48-month, 11% auto loan. To determine this amount, First Financial would:

A) Multiply $10,500 by the present value of $1.
B) Divide $10,500 by the future value of an ordinary annuity of $1.
C) Divide $10,500 by the present value of an annuity due of $1.
D) Multiply $10,500 by the present value of an ordinary annuity of $1.