Question

A Chevrolet Sonic Hatchback costs $ 14 , 545.00 $14,545.00. With a 10 10 % %​ down payment, you can have an amortized loan for 6 6 years at a rate of 4 4 % %​. What will the monthly payment be?

Answer 1

The monthly payment for the amortized loan will be approximately $212.60.

Step-by-step explanation:

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

Monthly Payment = P * r * (1 + r)^n / ((1 + r)^n - 1)

Where P is the principal amount, r is the monthly interest rate, and n is the number of months.

In this case, the principal amount (P) is the purchase price minus the down payment (P = $14,545.00 - $14,545.00 * 10% = $13,090.50).

The monthly interest rate (r) is the annual interest rate divided by 12 (r = 4% / 12 = 0.00333).

And the number of months (n) is 6 years * 12 months = 72 months.

Plugging these values into the formula:

Monthly Payment = $13,090.50 * 0.00333 * (1 + 0.00333)^72 / ((1 + 0.00333)^72 - 1)

= $212.60 (approximately)