Question

$24,000 for new Honda, 2.75% interest rate for 4 years. What is the monthly payment? ( Explanation needed)

Answer 1

2.75/100=0.0275
= 24000 x ( 1 + 0.0275 ) ^ 4= 26750.91
26750.91 - 24000 = 2750.90
i’m sorry if it’s wrong

Answer 2

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: