Question

Andy is buying a car. He negotiated a 7% on a £6500 car. He will pay the full balance in 12 equal monthly payments.

Calculate the amount paid each month.

Answer 1

562.42 pm

Explanation:

Answer 2

9514 1404 393

Answer:

£562.42

Explanation:

Payments on a loan of P at rate r for n months can be found from ...

A = P(r/12)/(1 -(1 +r/12)^-n)

For r = .07 and n = 12, the payments on a £6500 loan will be ...

A = £6500(.07/12)/(1 -(1 +.07/12)^-12) = £562.42

Andy will pay £562.42 each month.