Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,700 at 2.5% add-on rate for 5 years. (Round your answers to the nearest cent.)

Question

Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,700 at 2.5% add-on rate for 5 years. (Round your answers to the nearest cent.) 
$   interest 
$   per month

Henry · Answer

Pt = Po*r*t / (1 - (1+r)^-t),

r = (2.5% / 12) / 100% = 0.002083 = monthly % rate expressed as a decimal.

t = 12mo/yr * 5yrs = 60 months.

Pt=42700*0.002083*60 / (1-(1.002083)-60
=5337.4991 / 0.117388323=$45,468.74

Int. = 45,468.74 - 42700 = $2768.74

Monthly=Pt / t=45468.74 / 60 = $757.81

Geraldine · Answer

find the amount of interest and monthly payment for loan. Purcase a living room set for 3,900 at 12% add-on interest for 2 years. round your monthly payment to the nearest cent.