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Anthony has decided to purchase a $19,000 car. He plans to put 20% down toward the purchase and to finance the rest at a 6.8% interest rate for 4 years. Find his monthly payment

2 Answers

3 votes

Answer:

Total price paid is 20,033.60

Explanation:

20% of 19,000 is 3,800

19,000 - 3,800 = 15,200

6.8% of 15,200 is 1,033.60

3,800 + 15,200 + 1,033.60 = 20,033.60

User Boboyum
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0 votes

Answer:

$362.57

Explanation:

A suitable calculator or finance app can find the monthly payment for you. This result comes from a TI-84 calculator.

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The second attachment shows the parameters of the payment function. With 20% down, Anthony is only financing 80% of the price of his car. Of course, there are 12 months in a year, so 4 years worth of payments will be 48 payments. The calculator uses negative values for amounts you pay.

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No doubt your reference material shows you a formula for computing loan payments. One such is ...

A = Pr/(1 -(1+r)^-n)

where r is the monthly interest rate, 0.068/12, and n is the number of payments, 48. The principal amount of the loan, P, will be 19,000Ă—0.80. This formula gives the same result as that shown above and below.

Anthony has decided to purchase a $19,000 car. He plans to put 20% down toward the-example-1
Anthony has decided to purchase a $19,000 car. He plans to put 20% down toward the-example-2
User Thanasisp
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