Question

Ashlee bought a new car. The total amount she needs to borrow is $20,839. She plans to take out a 3 year loan at an APR of 5.6%. What is her monthly payment? round to the penny.

Answer 1

$interest \ per \ month = \frac{5.6} {12} = 0.467\%$

$in \ decimal form = \frac{0.467} {100} = 0.00467$

1 + 0.00467 = 1.00467

$20,839\ =\ C(1\ -\ 1\ /\ 1.00467{1.00467}^{36})\ /\ 0.00467$

$monthly \ payments\ will \ be \ \$630.2$