Question

You wish to buy a $20,000 car. The dealer offers you a 5-year loan with an 5 percent APR. What are the monthly payments

Answer 1

Answer:

the monthly payments are $377.42.

Explanation:

The monthly payments, PMT on the loan can be determined using a financial calculator as follows :

PV = $20,000

N = 5 × 12 = 60

P/YR = 12

R = 5.00 %

FV = $ 0

PMT = ?

Using a Financial Calculator, the monthly payments, PMT on the loan are $377.42.