9514 1404 393
Answer:
$376
Step-by-step explanation:
The amount financed is the cost less the down payment:
financed = $29,500 -6000 = $23,500
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The payment amount is given by the amortization formula.
A = P(r/12)/(1 -(1 +r/12)^-n)
loan payment on principal P at annual rate r compounded monthly for n payments.
Using the given numbers, this is ...
A = $23,500(0.048/12)/(1 -(1 +0.048/12)^-72) = $23,500(0.004)/(1 -(1.004^-72))
A ≈ $376.29
Nicole's monthly payment will be about $376.
