Question

Victor would like to buy his first car and the one he has his eye on is $25,000 plus an extra 13% HST for a total price of $28,250. The dealership has a deal for 0% down payment and charges 2.89% interest on the loan. Victor plans to make car loan payments weekly and has accepted the maximum loan repayment period of 8 years.
How much will his weekly care loan payment be?

Answer 1

To make the standard formula to work, the interest rate must be compounded weekly
i = .0289/52 = .000555769 , I will store that in my calculator's memory for best accuracy.
n = 52*8 = 416 weeks
payment --- p

p(1 - 1.00555...^-416)/.00055.. = 28250
solve for p

Hint, you should get a bit over $75

let me know what you got

Answer 2

I got around $76.08

There's a follow up question for this word problem and it's
How much will he have paid to the dealership by the time his loan is paid off?

I answered that question by multiplying $76.08 how many weeks are in a month and multiplied it by 12 and multiply by 8 again but I'm not sure if I did this correctly

Answer 3

The $76.08 is correct
But you should have multiplied it by 416 in one step
When you multiply the number of weeks in a month, usually 4, then by 12 and 8
you don't get 416
4x12 = 48, but there are 52 weeks in a year
so you need 52x8 = 416