Question

You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan?

Answer 1

Payment = (20000-2000)×(0.12/12) / (1-(1+0.01)^60)=400.40