net cost of car = .8(32500) + 1685 = 27685 <---- PV of her loan
i = .0575/12 = .00479166...
n = 36
pay = ?
pay(1 - 1.0047916...^-36)/.0047916... = 27685
pay(32.9937..) = 27685
pay = $839.10
A car dealer offered an end-of-year clearance that was 20% off the MSRP of $32,500. Janice Ng agrees to that price plus additional tax and license fees of $1,685. If she obtains a 3-year loan at an annual interest rate of 5.75% compounded monthly, what is her monthly payment (in dollars)? (Round your answer to the nearest cent.)
1 answer
1 answer