PV = payment (1 - (1+i)^-n )/i
you should know this formula
balance is .85(21300) = 18105
i = .07/12 = .0058333...
n = 48
18105 = payment (1 - 1.00583333..^-48)/.0058333..
18105 = payment ( 41.76020173)
payment = 18105/41.76... = $ 433.55
( I carried all the decimals my calculator could hold, they must have rounded off before they got to the final answer, not a good idea if you have a calculator)
Kate bought a new car priced at $21,300 with 15% down and the balance in equal payments over 4 years at 7% compounded monthly. Determine the size of the monthly payments? The answer is $433.65 please show me the steps
1 answer
1 answer