Question

You obtain a vehicle loan from the bank for $34,720 for a term of 4 years at an annual interest rate of 7.5%.  Use the amortization formula or a TVM calculator to determine monthly payments.​

Answer 1

Answer:

TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]

TVM=839.49

Explanation:

An=34,720

t=4 yrs , ---> n=48 (4*12)

j=7.5 %.---> i=0.075/12

m=12

* i=j/m

*n=mt

TVM=An*i : [1-(1+i)^-n]

TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]

TVM =839.49 (round two decimal)