Question

You bought a Tesla Model 3 for $34287 and the auto loan is 60-month fixed rate loan with interest rate of 2.4% per year. What is your monthly payment? (Round to the nearest dollar.)

Answer 1

EMI formula = Principal * Rate *(1+r) ⁿ / [(1+r) ⁿ -1]

Rate =2.4%/12 = 0.002 per month

N= 60 [5*12]

EMI = 34287 *0.002 * (1+0.002) ⁶⁰ / [(1+0.002) ⁶⁰ -1] =607

Alternatively using excel or financial calculator- 

Excel workings:

NPER	60
FV	0
PV	34287
Rate	0.200%
PMT	607	[-pmt(rate, nper, pv,fv)]

Answer : $607 per month (rounded off to the nearest dollar)