Question

For a 5 year car loan of $10000 at 7.5% what is the monthly payment?

Answer 1

Explanation:

Turn 10000 and 7.5% into a fraction.

(10000/1) (7.5/100)

Multiply both fractions:

`(10000)/(1) * (7.5)/(100) = (75000)/(100)`

Simplify. Divide both the numerator and denominator by 100:

`(75000 / 100)/(100 / 100) = (750)/(1)`

The monthly payment is $750.