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faust18 [17]
3 years ago
14

Make a down payment of $1500 and finance the rest of $20000 at 1.9% interest rate, making equal monthly payments for 5 years.

Mathematics
1 answer:
Rudik [331]3 years ago
7 0
We know that we have to m<span>ake a down payment of $1500 and finance the rest of $20000 at a 1.9% interest rate, making equal monthly payments for 5 years. Our first step to solve this problem would be to convert 5 years into months. 

1 year = 12 months 

12 * 5 = 60 months 

Therefore, in 5 years there are 60 months. 

Now lets solve this problem step by step. 

Subtract the down payment from $20,000

</span>$20000-$1500=$18500

Multiply the remaining number by the interest rate. 

$18500 *1.9 = $35150 

Divide 35150 by number of months in 5 years (60)

$35150 / 60 = $585 

<span>Therefore, you have to pay $585 per month. </span>
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