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
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.
