Ask Question
MathematicsMathematics
2 December, 09:59

Teresa is buying a car for $23,550. She will finance $19,600 of it with a 2-year loan at 2.7% APR. What will her monthly auto payment be?

+3
Answers (1)
  1. 2 December, 10:21
    0
    Present value of annuity = 12P (1 - (1 + r/12) ^-12n) / r

    19,600 = 12P (1 - (1 + 0.027/12) ^ - (2 x 12)) / 0.027

    0.027 x 19600 = 12P (1 - (1 + 0.00225) ^-24)

    529.2 = 12P (1 - (1.00225) ^-24)

    12P = 529.2 / (1 - 0.9475) = 529.2 / 0.0525

    P = 10,077.9995 / 12 = $839.83

    Therefore, her monthly payment = $839.83
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Teresa is buying a car for $23,550. She will finance $19,600 of it with a 2-year loan at 2.7% APR. What will her monthly auto payment be? ...” in 📗 Mathematics 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
You Might be Interested in
An artist sells 4 paintings for $20 each, 4 sculptures for $60 each, and 4 photographs for $10 each at her art show. The artist sells 2 more paintings and 4 more sculptures at the same prices.
Answers (1)
E=1/2mv^2. solve for m
Answers (2)
If P (B) = 0.4, P (A or B) = 0.7, and P (A and B) = 0.3, find P (A).
Answers (2)
Three brothers have ages that are consecutive even integers the product of the first & third boys ages is 20 more than twice the seconds boy age. find the age of each of the boys
Answers (1)
Write log (x^2-9) - log (x+3) as a single logarithm.
Answers (1)
New Questions in Mathematics
The table below shows the relationship between the number of hours Nina worked and the number of hours Kathy worked.
Answers (1)
Determine all of the roots (or zeros) 4x^3-4x^2-11x+6=0 if 2 is known to be one of the roots
Answers (1)
In a small town there are two main sections called the Hill section and the Lake section. The town has a population of 4298. The number of people who live in the Hill section is 188 more than twice the number of people who live in the Lake section.
Answers (1)
Two accounts each begin with a deposit of $5000. Both accounts have rates of 5.7 %, but one account compounds interest once a year while the other account compounds interest continuously.
Answers (1)
Blue whales eat an average of 5,000 pounds of fish daily, with a standard deviation of 850 pounds. Approximately what percentage of blue whales eat more than 7,550 pounds of fish? 15.87% 5% 0.3% 0.15%
Answers (1)
Home » Mathematics » Teresa is buying a car for $23,550. She will finance $19,600 of it with a 2-year loan at 2.7% APR. What will her monthly auto payment be?
Sign Up Forgot Password?