Question

Suppose that you decide to buy a cor tor $28, 635, induding taxes and license foes. You saved $6000 for a down poyment and can got a fouryear car loan at 6.53%. Use PMT =P(r/n)/[1−(1+nr​)​] Io find the monthly payment and the total inlerest for the loan. The monthly payment is ___

Answer 1

The monthly payment for the car loan is approximately $682.67.

Step-by-step explanation:

To calculate the monthly payment and total interest for the car loan, we will use the formula PMT =P(r/n)/[1−(1+nr​)​].

Given the following information: P (principal) = $28,635, r (annual interest rate) = 6.53%, and n (number of payments per year) = 12, we can substitute these values into the formula.

PMT = 28635 * (0.0653/12) / [1 - (1 + (0.0653/12))^(-4*12)]. Calculating this expression will give us the monthly payment for the car loan.

Using a financial calculator or software, we find that the monthly payment for the car loan is approximately $682.67.