Question

ing using a calculator​) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow ​$ to pay for his new car. How large will​ Jesse's monthly car loan payment be if he can get a ​-year ​( equal monthly​ payments) car loan from the​ university's credit union at an APR of percent compounded​ monthly?

Answer 1

Monthly car loan payment = $414 (Approx.)

Step-by-step explanation:

Missing information;

Amount borrow = $29,000

NUmber of payment = 7 year x 12 = 84

Rate = 5.3% yearly = 0.053 / 12 monthly

Find:

Monthly car loan payment

Computation:

PV = $29,000

N = 84

r = 0.053/12

FV = 0

PV = (PMT/r)[1 – 1/(1 + r)ⁿ] + FV/(1 + r)ⁿ

29,000 = [PMT/(0.053/12)][1 – 1/(1 + 0.053/12)^84] + 0

PMT = 413.98

Monthly car loan payment = $414 (Approx.)