You want to buy a motorcycle for $13,500 plus freight of $155 and other delivery charges of $125. You have already saved 25% of the total purchase price (including all charges) towards a down payment. The bank is willing to finance the remaining balance at 9.41% compounded quarterly. What is the size of your monthly payment if the loan is for 4.75 years?

Question
Asked Apr 9, 2019

You want to buy a motorcycle for $13,500 plus freight of $155 and other delivery charges of $125. You have already saved 25% of the total purchase price (including all charges) towards a down payment. The bank is willing to finance the remaining balance at 9.41% compounded quarterly. What is the size of your monthly payment if the loan is for 4.75 years?

check_circle

Expert Answer

Step 1

We have been given that the total cost of the motercycle is $13,500 plus freight of $155 and other delivery charges of $125.

Thus, the total cost would be 13,500+155+125 = $13,780

fullscreen
Step 2

We know that 25% of the total of this purchase is being downpaid. So, the amount that needs to be loaned would be

fullscreen
Step 3

Now, we are given that this amount of $10,335 is being financed by the bank at 9.41% compounded quarterly. 

We need to find the size of...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Math

Algebra

Applications of Mathematics

Related Algebra Q&A

Find answers to questions asked by student like you

Show more Q&A add