Question

Bob Rohrman is offering a 2017 Toyota Camry for $29,000. If you have a 7% down payment and are able to borrow the rest at a 2.99% APR on a 48 month loan, how much will your payments be?

Answer 1

Monthly installment  payment  is $597 .Total payments is $28,649

Step-by-step explanation:

Down payment = $29,000×7 ÷100= $2,030

Loan amount   =  $29,000 - 2,030 = $26,970

Interest rate     =  2.99%

Repayment period = 48 months (4 years)

simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods.

= 26,970 (1+0.0299) × 4) +p =$28,648.51

$= 26,970 (1+0.0299) × 4) +p = 28,648.51$

Monthly payment = $596.84 (or) $597 (rounded off)

$Monthly payment = 596.84 (or) 597 (rounded off)$

Total payments is $28,649