Question

Fritz benjamin buys a car costing $8300. He agrees to make payment at the end of each month period for 8 years. He pays 7.2% interest compounded monthly. what is the amount of each payment? find the total amount of interest fritz will pay?

Answer 1

PV = 8300
payment --- p
i = .072/12 = .006
n= 8(12) = 96

p(1 - 1.006^-96)/.006 = 8300

solve for p

Wow, 8 years to pay off a car ?

Answer 2

TVM Calculator
N=96
I=7.2
PV=8300
PMT=Alpha Enter
FV=0
P/Y=12
C/Y=12
END

Total Interest: Multiply 9 by the monthly payments