Answer:
The monthly payment of Leo for the car loan for next four years is $759.5
Step-by-step explanation:
Given as :
The loan of the car = $9600
The rate of interest for first year = 0%
The next 4 years, the rate of interest = 3.9% compounded monthly
The amount paid for first year = $150 per months
I.e The amount paid for first month = $150 × 12 = $1800
Let The amount for next fours years = $A
Now, According to question
∵ For the first year $1800 is paid
So, The rest amount of loan = $9600 - $1800 = $7800
<u>From compound interest </u>
Amount = principal ×
Or, $A = $7800 ×
Or, A = $7800 ×
Or, A = $7800 × 1.1685
∴ A = $9114.3
So, The amount paid after 4 years = A = $9114.3
Or,The amount paid after 4 years as per months =
Or,The amount paid after 4 years as per months = $759.5
Hence The monthly payment of Leo for the car loan for next four years is $759.5 Answer