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denis-greek [22]
3 years ago
12

Gerritt wants to buy a car that costs $30,750. The interest rate on his loan is 5.65 percent compounded monthly and the loan is

for 7 years. What are his monthly payments
Business
1 answer:
svet-max [94.6K]3 years ago
7 0

Answer:

$444.07

Explanation:

EMI = [P * I * (1+I)^N]/[(1+I)^N-1]

P =loan amount or Principal = 30750

I = Interest rate per month = .0565/12

N = the number of installments = 7*12 = 84

EMI = [30750*.0565/12* (1+(.0565/12))^84]/[(.0565/12))^84-1]

EMI = [30,750 * 0.0565  / 12 * 1.48374877204] / [1.48374877204 - 1]

EMI = 214.819001902 / 0.48374877204

EMI = $444.07

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