Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.

You borrow $16,000 with a term of four years at an APR of 5% to buy a truck. What is your monthly payment? (Round your answer to the nearest cent.)
$


How much total interest is paid? (Round your answer to the nearest cent.)
$

Answer 1

Answer:

368.47

1686.56

Step-by-step explanation:

effective rate: .05/12=.00416666667

payment=x

$16000=x\frac{1-(1+.00416666667)^{-48}}{.00416666667}\\x=368.47$

Interest:

368.47*48-16000=1686.56

Answer 2

Answer:

Answer:

368.47

1686.56

Step-by-step explanation:

effective rate: .05/12=.00416666667

payment=x

\begin{gathered}16000=x\frac{1-(1+.00416666667)^{-48}}{.00416666667}\\x=368.47\end{gathered}

16000=x

.00416666667

1−(1+.00416666667)

−48

x=368.47

Interest:

368.47*48-16000=1686.56