Finance Help Please.?
You purchased a car for 30,000. You also make a 3,000 down payment. What is the amount of the monthly payment on a loan if the borrowing rate is 12% per year on a 50 month car loan?
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You purchased a car for 30,000. You also make a 3,000 down payment. What is the amount of the monthly payment on a loan if the borrowing rate is 12% per year on a 50 month car loan?
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Verified answer
30,000 - 3000 = $27,000
r = 12% = 0.12
t = 50 months = 50/12 = 4.1666... years
P = 27,000(1 + 0.12)^4.1666... = 43,295.11
43,295.11/50 = $865.90
- .--
P ( r / 12 )
-------------------------
-m
(1 - ( 1 + r / 12 ) )
so that turns into
27000 ( .12 / 12 )
-------------------------
-50
(1 - ( 1 + .12 / 12 ) )
270
-------- = 688.8458
0.39196