Anthony has decided to purchase a $19,000 car. He plans to put 20% down toward the purchase and to finance the rest at a 6.8% in
terest rate for 4 years. Find his monthly payment
1 answer:
Answer:
$362.57
Step-by-step explanation:
A suitable calculator or finance app can find the monthly payment for you. This result comes from a TI-84 calculator.
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The second attachment shows the parameters of the payment function. With 20% down, Anthony is only financing 80% of the price of his car. Of course, there are 12 months in a year, so 4 years worth of payments will be 48 payments. The calculator uses negative values for amounts you pay.
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No doubt your reference material shows you a formula for computing loan payments. One such is ...
A = Pr/(1 -(1+r)^-n)
where r is the monthly interest rate, 0.068/12, and n is the number of payments, 48. The principal amount of the loan, P, will be 19,000×0.80. This formula gives the same result as that shown above and below.
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She invested "a" at 5% and "b" at 6%.
now, we know whatever amounts "a" and "b" are, they add up to 8000, thus a + b = 8000.
how much is 5% of a? well, (5/100) * a, or 0.05a.
how much is 6% of b? well, (6/100) * b, or 0.06b.
After a year, their combined interest, their yield, was 455, thus, we also know that 0.05a + 0.06b = 455.
how much was invested at 6%? well, b = 8000 - a.
now, we know whatever amounts "a" and "b" are, they add up to 8000, thus a + b = 8000.
how much is 5% of a? well, (5/100) * a, or 0.05a.
how much is 6% of b? well, (6/100) * b, or 0.06b.
After a year, their combined interest, their yield, was 455, thus, we also know that 0.05a + 0.06b = 455.
how much was invested at 6%? well, b = 8000 - a.