Question

Anyone???

Calculate your monthly payment for a five-year term, 5% expected APR, with a $10,000 down payment.

Answer 1

Explanation:

The formula to calculate your payments is

p = a ÷ [ ( (1+r)^n-1) / (r (1+r)^n )] <=== ya just gotta look these formulas up....I doubt anyone 'remembers' them.....

with $ 10000 down payment on a $ 20500 loan

the loan balance amount becomes $ 10500 = a

r = monthly periodic interest in decimal = .05/12

n = periods = 5 years = 60 months

p = payment amount

p = $ 10500 ÷ [ (( 1 + .05/12)^60 - 1 ) / ( .05/12 (1 +.05/12)^60 ) ]

crunching the numbers shows

p = $ 198.15

Answer 2

$198.15

Explanation:

To calculate the monthly payment for a loan, we can use the monthly payment formula:

`PMT = (P r (1 + r)^n)/((1 + r)^n - 1)`

where:

• PMT is the monthly payment.
• P is the principal loan amount.
• r is the interest rate per month (in decimal form).
• n is the term of the loan (in months).

In this case, the principal (P) is the initial loan less the down payment:

`P = \$20,500 - \$10,000 = \$10,500`

To find the monthly interest rate (r), simply divide the APR by 12:

`r = (0.05)/(12)`

The term of the loan is 5 years, so to determine the term of the loan in months (n), multiply 5 years by 12:

`n=5 * 12 = 60\; \sf months`

Substitute these values into the formula:

`PMT = (10500 \cdot \left((0.05)/(12)\right)\left(1 + (0.05)/(12)\right)^(60))/(\left(1 + (0.05)/(12)\right)^(60) - 1)`

Calculate:

`PMT=198.147953...`

Therefore, the monthly payment for a $20,500 loan with a $10,000 down payment, a 5% expected APR, and a 5-year term is:

`\Large\boxed{\boxed{\$198.15}}`