In order to get the stipulated monthly payments towards the Tesla model car, we use the EMI formula, where EMI means Equated Monthly Installment.
The formula is: EMI formula =Principal * Rate*(1+r)n /[(1+r)n -1]
n= number of monthly payment periods over the fixed payment period.
r=rate of interest over the fixed period per year.
By using Equated Monthly Installment formula.
EMI formula =Principal * Rate*(1+r)n /[(1+r)n -1]
Rate =2.4%/12 =0.002 per month
N= 60 months *[5*12]
EMI= 34287 *0.002*(1+0.002)60 / [(1+0.002)60 -1]
Ans. =& 607 each month.
By using Equated Monthly Installment formula then the answer will be = 607 each month.