+3 Hello Looking for some assistance regarding the following problem. Any help is appreciated.
An installment contract for the purchase of a car requires payments of $285.56 at the end of each month for 5.5 years. Interest is 9% per annum compounded monthly.
(a) What is the amount financed?
(b) How much is the interest cost?
+36916 part a)
PV = pmt { (1-(1+i)-n ) / i } PV is the financed amount at the beginning
pmt = 285.56
i is interest is per month = .09/12
n is periods 5 1/2 years of months = 66
For part b 66 payments x 285.56 - part a = interest paid
