Question

) I want another BMW i-8 that costs $98,316.00 for 5 years at an APR of 1.02%. What is my monthly payment?

Answer 1

$1681.76

Step-by-step explanation

Step 1

Let

M = the total monthly mortgage payment.

P = the principal loan amount=98316

Annual Percentage Rate=1.02%=0.0102

montly rate=0.0102/12=0.00085

n = number of payments over the loan’s lifetime=5*12=60 months

then

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

then, replace

`\begin{gathered} M=98310((0.0102(1+0.0102)^(60))/((1+0.0102)^(60)-1)) \\ M=98310((0.018)/(1.0102^(60))) \\ MonthlyPayment=$1,681.76$ \end{gathered}`

I hope this helps you