Sam purchased a used car for $14,750. He put $2,000 down and financed the rest with a 48-month, 7.5% loan.

Question

What is his monthly car payment? Round your answer to the nearest cent.

Answer 1

P ( r / 12 )
-------------------------
-m
(1 - ( 1 + r / 12 ) )

represented by this equation


15000 ( 0.07/ 12 )
-------------------------
-36
(1 - ( 1 + 0.07 / 12 ) )

solving this would give

92.1875
------
0.25849

= a payment of $356.64 each month for 48 months

Answer 2

-m and -36 are exponents of the bottom equation and i meant to but -48 not -36 in the equation a typo my bad

( 1 + 0.07 / 12)^(-48)