a car costing 5995. financed at 9% interest for 36 mos will cost what per month?
(5995+(5995*9%))/36 = 181.5152777777777777777777777777777777777777777777777777777777777778
OR, in shorter numbers
~$181.52
Hi Rarinstraw,
You have tried to do it on simple interest but your answer is too little becasue you have only charged interest for 1 year, not for three.
a car costing 5995. financed at 9% reducing interest for 36 mos will cost what per month?
C=??
PV=5995
n=36
i=0.09/12 = 0.0075
\(5995=C*\frac{1-1.0075^{-36}}{0.0075}\\ C=5995\div (\frac{1-1.0075^{-36}}{0.0075})\)
5995/((1-1.0075^-36)/0.0075) = $190.64 per month
+5265 
