If you accept a car loan of $20,000 for 5 years at an interest rate of...

If you accept a car loan of $20,000 for 5 years at an interest rate of 3%, what is the monthly payment?

Expert Solution

Ans $ 359.37

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods

P =	r (PV)
	1 - (1 + r )^-n

P =	(3%/12)*20000
	1 - (1 / (1 + 3%/12)^60))

P =	50
	0.139130894

P =	359.37

jeff jeffy answered 3 years ago

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