Question

Find the monthly payment for the loan. used-car financing of $600,000 for 25 months at 11.75%. please round the answer to the nearest cent. the monthly payment is $ __________.

Answer 1

The monthly payment is $24000.05

For given question,

The loan taken as $600,000

So, Principal = $600,000

The rate of interest = 11.75 %

The time period (t) = 25 months

                               = 2.083 years

So, from compounded method,

⇒ Amount = Principal × [1 + (Rate/100)]^{t}

⇒ A = 600,000 + [1 + (11.75/100)]^(2.083)

⇒ A = 600,000 + (1.1175)^(2.083)

⇒ A = 600,000 + 1.2604

⇒ A = 600,001.3

Now we find the monthly payment.

Amount payment in monthly = 600,001.3 / 25

                                                = 24000.05

Therefore, the monthly payment is $24000.05

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