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You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate...

You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate is 4.46%, what is your monthly payment?

Solutions

Expert Solution

PV = 31837

Nper = 5 yr * 12 months = 60 months

Rate per month = 4.46%/12

FV = 0

The monthly payment can be calculated with the help of PMT function of Excel.

=PMT(0.0446/12,60,31837,0,0)

= $592.96

Monthly payment = 592.96

jeff jeffy answered 2 years ago
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