$24,000 for new Honda, 2.75% interest rate for 4 years. What is the monthly payment? ( Explanation needed)
2 answers:
Answer:
(Use the attached formula)
24,000 for 4 years (48 months) at 2.75% interest
We divide rate by 1,200 which equals 0.0022916667
Monthly Payment = 0.0022916667 + {(0.0022916667 / [(1.0022916667)^48 -1]} * 24,000
Monthly Payment = 0.0022916667 + (0.0022916667 / (1.1161375981 -1) * 24,000
Monthly Payment = [0.0022916667 + (0.0022916667 / 0.1161375981 ] * 24,000
Monthly Payment = [0.0022916667 + 0.0197323411 ] *24,000
Monthly Payment = 0.0220240078 * 24,000
Monthly Payment = 528.5761872 = 528.58 (rounded)
Step-by-step explanation:
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