Question

You want to buy a new sports coupe for $91,500, and the finance office at the dealership has quoted you an APR of 7.3 percent for a 72 month loan to buy the car. a. What will your monthly payments be

Answer 1

Answer: $1573

Step-by-step explanation:

The information given above can be processed further as follows:

Nper = 72

Rate = 7.3%/12 = 0.073/12 = 0.0060833 = 0.0061

PV = 91500

The formula to use will be:

= PV ÷ 1 - (1 - r)^-nper / r

= 91500 ÷ 1 - (1 0.0061)^-72 / 0.0061

= $1573

Therefore, monthly payments will be $1573