Question

Today, you are borrowing $7,800 to purchase a car. What will be your monthly payment if the loan is for four years at 6.45 percent interest?

Answer 1

Monthly payment if the loan for four years:

Given:

Total loan = $7800

Interest payment = 6.45 % per year

Length of payment = 4 years

Let X= monthly payment in dollars

X = (7800+ (7800*.0645) (4))/4*12

X = (7800 + (503.10)4)/48

X = (7800+2012.40)/48

X= 9812.40/48

X = 204.43 (rounded off)