SOLUTION:
Step 1:
In this question, we are given the following:
Suppose that you decide to buy a car for $32,635, including taxes and license fees.
You saved $9,000 for a down payment and can get a four-year car loan at 6.31%.
Find the monthly payment and the total interest for the loan.
Step 2:
In this question, we are given:
Cost of the car = $ 32, 635
Down payment = $ 9000
Principal on the Car loan = $ ( 32,635 - 9,000 ) = $ 23, 635
Rate = 6. 31%
Using the PMI Formulae, we have that:
