Question

Suppose Capital One is advertising a 60​-month, 5.04 % APR motorcycle loan. If you need to borrow $ 8 comma 100 to purchase your dream​ Harley-Davidson, what will be your monthly​ payment?​ (Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Answer 1

$153.01

Step-by-step explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment

Given that,

Present value = $8,100

Future value or Face value = $0

RATE = 60 months = 5 years × 12 months

NPER = 5.04% ÷ 12 months = 0.42%

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the monthly payment is $153.01