Let me help you!
The total price of your new sports coupe is $84,600. The finance office at the dealership quoted you a 7.1 appreciation loan for 48 months or 4 years. You want to know how much you have to pay every month. Easy!
What we have so far:
Product price: $84,600
Percent appreciation: 7.1%
Time: 48 months or 4 years.
Here's how to solve it:
Step 1: Get the PERCENTAGE.
PERCENTAGE = $84,600 x 0.071
PERCENTAGE = $6,006.6
Step 2: Get the TOTAL PRICE (with percentage).
TOTAL PRICE = $84,600 + PERCENTAGE
TOTAL PRICE = $84,600 + $6,006.6
TOTAL PRICE = $90,606.6
Step 3: Get the MONTHLY PAYMENT.
MONTHLY PAYMENT = TOTAL PRICE / 48 months
MONTHLY PAYMENT = $90,606.6 / 48 months
MONTHLY PAYMENT = $1,887.64 <----- Answer
Therefore, you have to pay $1,887.64!
