Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.
Sagot :
Given:
Cost of a new car = $32,600
Trade-in old car cost = $5,000
Rate, r = 5% or 0.05
Time, t = 4 years
Asked: Find the monthly payment.
Solution:
[tex]PMT=\frac{P_O(\frac{r}{n})}{(1-(1+\frac{r}{n})^{-nt})}[/tex]where:
PMT = Loan Payment
Po = Loan Amount
r = Annual Interest Rate
n = Number of Compounds per year
t = Length of the Loan in years
Now that we have the formula, we will substitute the values.
Po = $32,600 - $5,000 = $27,600
r = 5% or 0.05
n = 12 (There are 12 months in 1 year)
t = 4 years
[tex]\begin{gathered} PMT=\frac{P_O(\frac{r}{n})}{(1-(1+\frac{r}{n})^{-nt})} \\ PMT=\frac{27600(\frac{0.05}{12})}{(1-(1+\frac{0.05}{12})^{-12\cdot4})} \\ PMT=\frac{115}{(1-0.8190710169^{})} \\ PMT=\frac{115}{0.1809289831} \\ PMT=635.6085026 \end{gathered}[/tex]ANSWER:
The monthly payment is $636. (Rounded to the nearest cent.)
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.