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Your auto insurance premium of $2200 is due today. You insurance company is giving you the...

Your auto insurance premium of $2200 is due today. You insurance company is giving you the "easy financing" option of making 12 monthly payments, with the 1st payment starting today. The interest rate on this financing option is 17.00% with monthly compounding. What's the monthly payment amount?

The final answer would be 197.85

Solutions

Expert Solution

PV = 2200, FV = 0, rate = 17%/12, N = 12

use PMT funciton in Excel with type as 1

monthly payments = 197.85

jeff jeffy answered 2 years ago
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