Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

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]

     

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.