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Problem 5-42 (similar to) (Nonannual compounding using a calculator) Jesse Pinkman is thinking about trading...
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.)
Solutions
Expert Solution
| 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) |
jeff jeffy answered 2 years agoRelated Solutions
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