Question

Problem 5-42 (similar to) ​

(Nonannual compounding using a calculator​) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow ​$30,000 to pay for his new car. How large will​ Jesse's monthly car loan payment be if he can get a 7 ​-year ​(84 equal monthly​ payments) car loan from the​ university's credit union at an APR of 7.6 percent compounded​ monthly? ​

Jesse's monthly car loan payment will be ​$___. ​(Round to the nearest​ cent.)

Answer 1

	Monthly car payment	[P×r×(1+r)^n]÷[(1+r)^n-1]
	Here,
1	Interest rate per annum	7.60%
2	Number of years	7
3	Number of compoundings per per annum	12
4 = 1÷3	Interest rate per period ( r)	0.63%
5 = 2×3	Number of periods (n)	84
	Loan amount (P)	$                                                                                           30,000
	Monthly car payment	$                                                              461.63
		30000*0.63%*(1+0.63%)^84)/((1+0.63%)^84-1)