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maxonik [38]
3 years ago
8

A rancher purchased an SUV for $33,714 and made a down payment of 15% of the cost. The balance was financed for 4 years at an an

nual interest rate of 7%. Find the monthly truck payment. ​
Mathematics
1 answer:
seropon [69]3 years ago
3 0

Formula for monthly payment is:

A = P x (r(1+r)^t)/((1+r)^t-1) where P is the amount financed, r is the interest rate divided by 12 and t is the amount of time for the loan in months.

P = 33714 x 0.85 = 28656.90

A = 28656.90 x (0.07/12 (1+0.07/12)^48) / (1 +0.07/12)^48 - 1)

A = $686.23

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