Asked by kena
A car with a sticker price of $42,200 with factory and dealer rebates of $5,100
(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)
$ 1
(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)
$ 2
(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)
3 %
(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)
$ 1
(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)
$ 2
(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)
3 %
Answers
Answered by
Henry
a.(42200-5100)/60 = $618.33 Per Month.
b. Po = 42200-5100 = Amount Financed.
P = (Po*r*t)/(1-(1+r)^-t)
r = (2.5%/12)/100% = 0.002083 = Monthly
% rate expressed as a decimal.
t = 60 months.
Plug the above values into the given Eq and get P = $39,505.80.
Monthly = P/60.
b. Po = 42200-5100 = Amount Financed.
P = (Po*r*t)/(1-(1+r)^-t)
r = (2.5%/12)/100% = 0.002083 = Monthly
% rate expressed as a decimal.
t = 60 months.
Plug the above values into the given Eq and get P = $39,505.80.
Monthly = P/60.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.