Question

You borrow $14,500 to buy a car. The terms of the loan call for monthly payments for 6 years at a 6.9 percent rate of interest. What is the amount of each payment

Answer 1

$246.51

Step-by-step explanation:

Use the Time Value of Money Techniques to find the Monthly Payments (PMT)

Pv = $14,500

N = 6 × 12 = 72

P/yr = 12

i = 6.9%

FV = $0

Pmt = ?

Using a financial calculator to input the data as above, the Monthly Payments (PMT) are $246.51