Question

You are considering the purchase of a $52,500 Ford F-150 Raptor. If you are financing the truck for 48 months and the auto loan annual rate is 3.5%, what is your monthly car payment? (Round your answer to the nearest hundredth; two decimal places)

Answer 1

The monthly car payment for a $52,500 Ford F-150 Raptor financed over 48 months with a 3.5% annual interest rate is approximately $1,198.86 when rounded to the nearest hundredth.

Step-by-step explanation:

To calculate the monthly car payment for a $52,500 Ford F-150 Raptor being financed for 48 months with an annual interest rate of 3.5%, we can use the standard formula for an amortizing loan. Here's the formula we will use:

PV = R * [1 - (1 + i)^(-n)] / i

Where:

• PV is the present value or the amount of the loan,
• R is the monthly payment,
• i is the monthly interest rate, and
• n is the number of payments.

First, we must convert the annual interest rate to a monthly rate by dividing by 12. Thus, i = 3.5% / 12. Next, we need to determine n, which is the number of monthly payments (48 in this case).

After solving the formula, you'll find that the monthly payment rounded to the nearest hundredth is approximately $1,198.86.

Please note that the exact payment may differ slightly due to rounding and the method your lender uses to calculate the payment schedule.