Question

a $16,000 car loan lease used to purchase a new car the loan is for 5 years and has a 6.2% APR. Use the amortization formula to determine the amount of the monthly payments.

Answer 1

The formula is the following:

`16,000(1+0.062)^n\text{ wherein n is the number of the years. }\\\text{For n=5 we get:}\\16,000(1+0.062)^5=\$21614`
In order to get the monthly amount, divide the above number by the number of months in 5 years like this:

`(\$21614)/(5*12)=\$360`

Answer $360