Question

Danny bought a new year. The total amount she needs to borrow is $19,541. She plans to take out a six-year loan at an APR of 8.3%. What is the monthly payment?

Answer 1

Present value of loan, P = 19541
monthly interest rate, i = 8.3%/12
repayment period = 6 years = 72 months

Monthly payment, 
$A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}$
$=\frac{19541(.083/12*(1+.083/12)^{72})}{(1+.083/12)^{72}-1}$
$=345.487$
$=345.49$   to the nearest cent