Question

Your spouse wants to buy a 2020 Tesla Model X for $90,000. She/he claims the payments are no big deal since interest rates are so low (I hope you win the lottery). The car would be financed with monthly payments over a 6-year period. The credit union is offering interest rates of 4.8% APR on monthly car loans. How much are the payments

Answer 1

Answer:

$1,144,11

Explanation:

Given,

Present value= $90,000

Time= 6 years*12= 72 months

Interest rate= 4.8%/12= 0.40% per month

The monthly payment is calculated by entering the below in a financial calculator:

PV= -90,000

N= 72

I/Y= 0.40

Press CPT key and PMT to compute the monthly payment.

The value obtained is 1,441.11.

Therefore, the monthly payment is$1,441.11.