Ask Question
15 September, 14:35

Caleb bought a car for $6,900. he agreed on a five - year loan at a 5.4% interest rate. calculate what caleb's monthly payments will be.

+4
Answers (1)
  1. 15 September, 14:42
    0
    Monthly payment amount is given by;

    P = A*D - - - A = Amount borrowed = $6,900, D = factor

    That is,

    D = [R/12]/[1 - (1+R/12) ^-12n] - - - where R = 5.4% = 0.054, n = 5 years

    Substituting;

    D = [0.054/12]/[1 - (1+0.054/12) ^-12*5] = 0.0191

    Therefore, monthly payment amount P is;

    P = A*D = 6900*0.0191 = $131.48
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Caleb bought a car for $6,900. he agreed on a five - year loan at a 5.4% interest rate. calculate what caleb's monthly payments will be. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers