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Homework answers / question archive / You finance a car that costs $20,000
You finance a car that costs $20,000. You are able to make a $5,000 down payment. You agree to 9% add on interest over 4 years. What is your monthly car payment?
we can calculate the monthy loan payment using the following formula
= P * r * ( 1 + r)^n / ((1+r)^n -1)
We are given the following values
P = Principal amount = $15,000
R = 9%
N = 4 Years
Hence using these values in the above formula
15000 * 9% * ( 1+9%)^4/ ((1+ 9%)^4 -1)
=$ 373.28
