Question

A salesperson buys a car to use in their job. They purchase the car for $35,756 with no money down. They pay for the car in 60 equal monthly payments with an annual interest rate of 7% compounded monthly. What is the salesperson's monthly payment

Answer 1

Answer:

1022.82 is salesperson's monthly payment.

Step-by-step explanation:

See the attached picture for detailed steps.

Answer 2

Answer:

Sales person monthly payment = $2554

Step-by-step explanation:

As we know that:

R= Regular fixed regular payment=?

S= Future amount = 35756

i= interest rate = 7% compounded monthly

n= number of periods during term of annuity = 60 monthly payments

solution:

      S= R [ 1-(1+i)∧-n / i ]

      35756 = R [ 1- (1+.07)∧-60 / .07

      35756     =  R  (1-.0172)/.07

     35756    =  R (.9828/.07)

   35756  = R  * 14.04

    R=  35756 /14.04

    R = $ 2554