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You want to buy a new sports coupe for $91,500, and the finance office at the dealership has quoted you an APR of 7.3 percent for a 72 month loan to buy the car. a. What will your monthly payments be
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You want to buy a new sports coupe for $91,500, and the finance office at the dealership has quoted you an APR of 7.3 percent for a 72 month loan to buy the car. a. What will your monthly payments be

User Crobar
by
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1 Answer

10 votes

Answer: $1573

Step-by-step explanation:

The information given above can be processed further as follows:

Nper = 72

Rate = 7.3%/12 = 0.073/12 = 0.0060833 = 0.0061

PV = 91500

The formula to use will be:

= PV ÷ 1 - (1 - r)^-nper / r

= 91500 ÷ 1 - (1 0.0061)^-72 / 0.0061

= $1573

Therefore, monthly payments will be $1573

User Sheldonbaker
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3.6k points
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