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Dmitriy789 [7]
2 years ago
7

1. Elissa is buying a new car. She has an excellent credit score of

Mathematics
1 answer:
k0ka [10]2 years ago
7 0

Answer:

$273.38 per month

Step-by-step explanation:

<u>Monthly Payment Formula</u>

\sf PMT=\dfrac{Pi(1+i)^n}{(1+i)^n-1}

where:

  • PMT = monthly payment
  • P = loan amount
  • i = interest rate per month (in decimal form)
  • n = term of the loan (in months)

Given:

  • P = $19,500 - $4,000 = $15,500
  • i = 2.25% / 12 = 0.0225 / 12
  • n = 5 years = 60 months

\implies \sf PMT=\dfrac{15500 (\frac{0.0225}{12})(1+\frac{0.0225}{12})^{60}}{(1+\frac{0.0225}{12})^{60}-1}

\implies \sf PMT=273.3788438

\implies \sf PMT=\$273.38

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