Question

Asked Oct 26, 2019

9 views

Step 1

Not:No intermediate rounding is done, only the answer is rounded to nearest dollar.

a)The cost of buying a car is $25,767 of which $8000 is saved as the down-payment. Therefore, the loan amount is $17,767 (25767 – 8000). Interest rate for a period of 5 year is 6.57%.

To calculate the monthly payment on the loan of $17.767, present value annuity payment formula will be used.

Step 2

Putting the values in the above equation:

Step 3

Answer: Monthly payment of the loan is $...

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