Question

You are interested in purchasing a new automobile that costs $ 38 comma 000. The dealership offers you a special financing rate of 12 % APR ​(1​%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the​ dealer's financing​ deal, then your monthly car payments would be closest​ to:

Answer 1

$1,000.69

Step-by-step explanation:

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

Provided that

Present value = $38,000

Future value or Face value = $0

NPER = 48 months

RATE = 1%

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 car payment is $1,000.69