You need a 27-year fixed rate loan to buy a new car for 22,000. Your bank...

You need a 27-year fixed rate loan to buy a new car for 22,000. Your bank will lend you the money at an annual interest rate of 5.3% APR. What is your annual payment?

1. 1,550.51

2. 814.81

3. 1,472.47

4. 665.52

Solutions

Expert Solution

What is your annual payment

=value/((1-(1+r)^(-n))/r)

=22000/((1-(1+5.3%)^(-27))/5.3%)

=1550.51

the above will be answer

jeff jeffy answered 2 years ago

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