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Suppose you purchase a car for a total price of $31,370, including taxes and license fee, and finance that amount for 7 years at an annual interest rate of 9%. (Round your answers to the nearest cent.)
(a) Find the monthly payment.
Guest Feb 28, 2012
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mkn:

Suppose you purchase a car for a total price of $31,370




P = L[c(1 + c)^n]/[(1 + c)^n - 1]

n: number of months: 12*7
c: monthy interest rate: 9%/12=0.09/12
L: Loan amount

[input]31370*( 0.09/12*(1+0.09/12)^(7*12) )/((1+0.09/12)^(7*12)-1)[/input]
about 505$

[input]31370-505*7*12[/input]
that's 11050$ in interest!
admin  Feb 28, 2012

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