Answered

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Jackie wants to buy a $25,000 car, but she can afford to pay only $400 per month for 5 years. If the interest rate is 8.25% compounded monthly, how much does she need to put down?

Sagot :

retirEEd

Answer:

A down payment of $5,388.50  to get the principle to $19611.50  for a monthly payment of $400 for 60 months at 8.25%

Step-by-step explanation:

I used a payment calculator

I don't know how else to solve the problem.  I thought I could find the equation, but I don't think this is it, since P didn't equal 19611.50

A = P[r(1+r)n] / [(1+r)n - 1]    

if you have the correct formula follow this process

A = 400        P principle ???    r = i%/12 = 0.0825/12 =  0.006875    n= 5×12 = 60

     solve for P      then    down payment = 25000 - P

 P = A / [r(1+r)n] / [(1+r)n - 1]    

    = A [(1+r)n - 1]  /  [r(1+r)n]

    =  400 [(1 +.006875)60 -1]  /  [0.006875( 1 +0.006875)60]

     

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