Question

Vehicle final sale price is $25,000 at 5% interest and offers financing up to 60 months. what is the monthly car payments?

Answer 1

$ 471.78

Explanation:

This describes an 'ordinary annuity' ====> FORMULA:

PV= C [ 1-(1+i)^-n / i ] Looking for C i = .05/12 n =60 PV = 25000

plug in the numbers and calculate C = 471.78