Question

You buy a car for $12,000 on a simple interest loan at a rate of 6% for 5 years. You will be financing the amount of car and interest. What is your monthly payment?

Answer 1

Answer:

M = $ 231.99

Step-by-step explanation:

See it in the pic.

Answer 2

The monthly payment for the car is $1300

The amount and simple interest

The formula for calculating amount is expressed as:

Amount = P + I

I = PRT
I = 12000 * 0.06 * 5

I = $3,600

Amount after 6 years = 12000 + 3600
Amount after 6 years = 15600

Monthly payment = 15600/12

Monthly payment = $1300

Hence the monthly payment for the car is $1300

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