Chris and Carol just bought a $14,000 van and financed it for 5 years at 7% interest. What are the

Question

monthly payments?

Answer 1

I = PRT
I = 14,000 * 0.07 * 5
I = 4,900

(14,000 + 4,900) / 60 = _______ monthly payment

Answer 2

What type of problem is this? amortization future value?present value? sinking fund? formula...

Answer 3

thank you ms sue

Answer 4

the amortization formula is

M = Pr/(1 - (1+r)^-n)
= 14000*(.07/12)/(1-(1+.07/12)^(-12*5))
= 277.22