You wish to buy a $10,000 dining room set. The furniture store offers you a three-year...

You wish to buy a $10,000 dining room set. The furniture store offers you a three-year loan with an 11 percent APR. What are the monthly payments? (Round your answer to two decimal places.)

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Expert Solution

monthly payment = P*r*(1+r)^n / [(1+r)^n-1]

here,

P = $10,000

r = 11% per year

=>11% * 1/12

=>0.916667%

=>0.00916667.

n= 3 years * 12 months

=>36.

monthly payment = $10,000*0.00916667*(1.00916667)^36 /[(1.00916667)^36-1]

=>91.6667 *(1.38887879)/[0.38887879]

=>$327.39.

jeff jeffy answered 2 years ago

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