Answered: How much would you have to pay monthly…

How much would you have to pay monthly for the car you want to buy if the cost of the car is $ 30,000 and they finance it at 5.75% compound interest for six years without having to pay down payment?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 8FPE

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

8. How much would you have to pay monthly for the car you want to buy if the cost of the car is $ 30,000 and they finance it at 5.75% compound interest for six years without having to pay down payment? NO EXCEL. PRESENT COMPLETE STEPS.

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Step 1 Formula for computation of monthly payment of loan(PMT)

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