Question

You are buying a car for $20,000 with financing at 5%. No payments are due for 6 months from today. After that payment, you must make 15 more payments of the same amount. If your down payment is $4,000. What would the recurring monthly payments be?

Answer 1

cost of car	20000
down payment	4000
loan amount = cost of car - down payment	16000
rate of interest	5%
after 6 months, at 5% annual rate of interest, the loan amount will grow to
=FV(5%,1/2,0,-16000)
$                                                                                                                                      16,395.12
total payments	16
16 months = 1 year 4 months = 1.33 years
Recurring monthly payment
= PMT(5%/12,16,-16395.12,,0)
₹ 1,061.36