Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow$8000 to purchase your dream Harley Davidson, what will your monthly payment be?

R=154.66941

Explanation:

the payment will be made monthly so we need to convert the 5.99% APR in to moths

Monthly Interest = 5.99%/12 = 0.499%

Total payments = 60

Amount Borrowed = $8000

Rental = ?

Using the annuity formula = P=R * (1 - (1+i) ^-n) / i

So we have = 8000=R * (1 - (1+0.499%) ^-60) / 0.499%

8000=R * (1-0.74181) / 0.499%

8000=R * 0.25818 / 0.499%

8000=R*51.72321

R=8000/51.72321

R=154.66941