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show how to calculate the monthly payment on a car that cost $15,995. The interest rate is 8.9% per year. You will be paying for it for 5 years, SHOW WORK

 Oct 9, 2017
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You would use this formula to calculate the monthly payment:

 

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

PMT=15,995 x 0.089/12{[1 + 0.089/12]^(5*12) / [1 + 0.089/12]^(5*12) - 1}

PMT =15,995 x 0.00741666{[1+0.00741666]^60 /[1.00741666]^60 - 1} 

PMT =118.62958333[ 1.557929826865] / [0.557929826865]

PMT =   118.62958333   x        2.792340096995.............

PMT =$331.25 The monthly payment for this loan.

 Oct 9, 2017

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