To help consumers in this tough economic climate, Pikes Peak Harley-Davidson offered to finance a new motorcycle for qualifying customers at 14% down, 11.00% interest for 60 months during July 2009. Rich Martinez was interested in calculating what his monthly payment would be if he bought a $29,536 bike.

Question

Calculate his monthly payment to the nearest cent. (Use the loan amortization table). (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.)

Answer 1

M = Pr/(1-(1+r)^-n)
M = (29536*(1-.14))*(.11/12)/(1-(1+.11/12)^(-60)) = 552.28