Suppose Capital One is advertising a 60-month, 5.04 % APR motorcycle loan. If you need to borrow $ 8 comma 100 to purchase your
dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.)
1 answer:
Answer:
$153.01
Explanation:
For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment
Given that,
Present value = $8,100
Future value or Face value = $0
RATE = 60 months = 5 years × 12 months
NPER = 5.04% ÷ 12 months = 0.42%
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the monthly payment is $153.01
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