Question
In: Finance
LOAN AMORTIZATION You want to buy a car, and a local bank will lend you $30,000....
LOAN AMORTIZATION You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 7 years (84 months), and the nominal interest rate will be 6% with interest paid monthly. What will be the monthly loan payment? Round to TWO decimal places.
Solutions
Expert Solution
Information provided:
Present value (PV)= $30,000
Time (N)= 7 years*12 = 84 months
Monthly interest rate (I/Y)= 6%/12 = 0.50%
Enter the below in a financial calculator to compute the monthly loan payment:
PV= -30,000
N= 84
I/Y= 0.50
Press the CPT key and PMT to compute the monthly loan payment.
The value obtained is 438.26.
Therefore, the monthly loan payment is $438.26.
In case of any query, kindly comment on the solution.
jeff jeffy answered 1 year agoRelated Solutions
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