You want to buy a new sports car from Muscle Motors for $38,000. The contract is in the form of an annuity due for 60 months at

Question

3 years ago

6

an APR of 10.00 percent. What will your monthly payment be?

1 answer:

insens350 [35] · Answer 1 · 2022-06-06T06:24:36+03:00

Answer:

$800.71

Explanation:

In this question we use the PMT formula that is shown on the attachment below:

Data provided in the question

Present value = $38,000

Future value = $0

Rate of interest = 10% ÷ 12 months = 0.83333%

NPER = 60 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payments is $800.71