Question

Hello what is the question to both parts and what is the monthly payment

Answer 1

In general, the monthly payment formula is

`M=(P((r)/(12))(1+(r)/(12))^n)/((1+(r)/(12))^n-1)`

In our case,

`P=19300,r=0.061,n=3\cdot12=36`

Where r=6.1%=0.061 and the number of payments is 12months*3years=36 monthly payments. Thus, the answer is

`\begin{gathered} \Rightarrow M=19300\cdot((0.061)/(12)(1+(0.061)/(12))^(36))/((1+(0.061)/(12))^(36)-1) \\ \Rightarrow M=588.0182\ldots \\ \Rightarrow M\approx588.02 \end{gathered}`

The monthly payment is $588.02