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

Answer 1

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

(14,000 + 4,900)/60 = ?

Answer 2

Car payments are usually calculated using compound interest.
monthly rate = .07/12 = .005833333..
let the payment be P

P( 1 - 1.0058333^-60)/.0058333 = 14000
P = 14000/50.50199..
= $277.22

Answer 3

see same question in first of "Related Questions" below