Suppose that you borrow $17,000 for five years at 6% toward the purchase of a car. Find the monthly payments and the total interest for the loan.

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Guest Mar 9, 2017

Guest · Answer 1 · 2017-03-09T02:34:59

PMT=PV . R .{[1 +R]^N / [1 + R]^N - 1}

PMT= 17,000 x 0.005 x {[1 + 0.06/12]^(6*12) / [1 + 0.06/12]^(6*12) - 1]}

PMT= 85.00 x 3.3145776.....

PMT=$281.74

Guest · Answer 2 · 2017-03-09T03:07:15

$281.74 x 72 =$20,285.28 Total principal + interest.

$20,285.28 - $17,000 =$3,285.28 Total interest on the loan.

Suppose that you borrow ​$17,000 for five years at 6​% toward the purchase of a car. Find the monthly payments and the total interest for the loan.