Question

you borrow $2,000 to buy a new car at 12% interest how much are you monthly payments if you plan to pay the auto in three years

Answer 1

	Monthly payment	[P×r×(1+r)^n]÷[(1+r)^n-1]
	Here,
1	Interest rate per annum	12%
2	Number of years	3
3	Number of compoundings per per annum	12
1÷3	Interest rate per period ( r)	1%
2×3	Number of periods (n)	36
	Loan amount (P)	$                                                                      2,000
	Monthly payment	$                          66.43
		(2000×1%×(1+1%)^36)÷((1+1%)^36-1)