Question

Supgose Captal One is adverting a 60-month, 5.71% APR molorcycle loant If you need to borrow 57,600 to purchase your dream Harley- Davidson, what wil be your monthly payment?

Answer 1

To find the monthly payment on a $7,600 motorcycle loan with a 60-month term and a 5.71% APR, convert the APR to a monthly interest rate and use the installment loan payment formula to calculate the payment.

Step-by-step explanation:

To calculate the monthly payment of a 60-month, 5.71% APR motorcycle loan for $7,600, you can use the formula for the monthly payment on an installment loan, which is:

M = P * (i / (1 - (1 + i)^(-n)))

Where:

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First, convert the APR to a monthly interest rate by dividing by 12:

i = 5.71% / 12
i ≈ 0.0047583

Then, plug the values into the formula:

M ≈ $7,600 * (0.0047583 / (1 - (1 + 0.0047583)^(-60)))

This calculation will give you the monthly payment you need to make to pay off the motorcycle loan over 60 months.