Final answer:
To calculate the monthly payment for financing a truck, subtract the down payment from the truck cost to get the loan amount. Then, use the loan amount, interest rate, and loan duration to calculate the monthly payment using a formula. In this case, the monthly payment is approximately $705.62.
Step-by-step explanation:
To calculate the monthly payment for financing a truck, you first need to determine the loan amount. In this case, the truck costs $35,000, and you plan to put down 15% as a down payment.
The loan amount is then calculated as $35,000 - (0.15 * $35,000) = $29,750.
Next, you need to calculate the monthly payment using the loan amount, interest rate, and loan duration. The interest rate is 6.00% and the loan lasts for four years.
Using the formula for calculating monthly payments, the monthly payment is:
Monthly Payment = Loan Amount * (Interest Rate / 12) * (1 + (Interest Rate / 12))^Number of Months / (1 + (Interest Rate / 12))^Number of Months - 1
Plugging in the values, the monthly payment is calculated as:
Monthly Payment = $29,750 * (0.06 / 12) * (1 + (0.06 / 12))^48 / ((1 + (0.06 / 12))^48 - 1)
Calculating this using a calculator or spreadsheet, the monthly payment is approximately $705.62