Question

You purchased a Honda Civic for $18,290 today. You took an auto loan at the annual interest rate of 3.65%. You are going to make equal monthly payment for next 6 years starting a month from now. How much is your monthly car payment

Answer 1

Answer:

$309.66

Explanation:

The total amount to be repaid after six years will be:

The amount will be Principal P x interest R x time period T

Amount = P (1+RT)

Amount =18,290 (1+3.65/100 X 6)

=18,290+( 1 +0.0365x6)

=18,290 x 1+0.219

=18,290 x 1.219

=22,295.51

The amount will be paid in equal installments for six years

Six year = 6x12 months

=72 month

Each month's payments will be total amount divide by 72 months

=22,295.51/72

=$309.66