Question

Gerritt wants to buy a car that costs $28,250. The interest rate on his loan is 5.45 percent compounded monthly and the loan is for 5 years. What are his monthly payments

Answer 1

Answer:

$538.96

Explanation:

The monthly payments or installation (PMT) can be simply determine using a financial calculator as :

PV = $28,250

I = 5.45 %

P/YR = 12

N = 5 x 12 = 60

FV = $ 0

PMT = ?? ($538.96)

Therefore,

The monthly payments or installation (PMT) is $538.96

thus,

Gerritt monthly payments are $538.96.