Question

Ricardo purchased a new car with the special 1.9% financing. If the car's price was $17,999 and he financed it for four years, find his monthly payment.

Answer 1

Answer: 389.71

Step-by-step explanation:

Answer 2

Monthly payment = 404.3

Step-by-step explanation:

Given:

Amount(P) = $17,999

Interest rate(r) = 1.9% = 1.9/100 = 0.019

Number of years(n) = 4 Years

Computation of Total amount:

`Total \ amount=P(1+r)^n\\ \\Total \ amount=17,999(1+0.019)^4\\\\Total \ amount=17,999(1.019)^4\\\\Total \ amount=17,999* 1.078193587\\\\=19,406.4061`

Total amount paid = $19,406.4

Total number of months = 4 years × 12

=48 months

So , Monthly payment = $19,406.40/48

Monthly payment = $404.3